Nicosia, Cyprus. Cyprus and European capital markets will enter a new phase in 2026, shaped by regulatory changes and higher supervisory expectations, according to Cyprus Securities and Exchange Commission (CySEC) chairman George Theocharides.
EU regulatory changes and implementation focus
In an article first published by the Cypriot daily Phileleftheros, Theocharides said revisions of MiFID II and MiFIR, AIFMD II and UCITS, alongside the MiCA and DORA regulations, are reshaping the market landscape through greater transparency, stronger investor protection and enhanced digital resilience.
He said the European Union has moved beyond a long period of intensive rulemaking into a phase focused on implementation and real-world evaluation during 2025 and 2026, signalling a more mature regulatory environment.
Theocharides said the revision of the MiFID II and MiFIR framework aims to reduce complexity, improve investor information and limit practices that create conflicts of interest. He added that, in practice, this means greater transparency on investment costs and clearer obligations for those providing investment advice.
Cyprus investment services sector and CySEC supervision
Turning to the domestic market, Theocharides said the investment services sector in Cyprus continued to undergo restructuring while recording growth in 2025.
Based on available data for November, he said the number of investment firms reached 253, while around 30 additional applications of various types are currently under licensing review.
He added that CySEC will intensify supervisory inspections in 2026, with a strong focus on the conduct of investment firms towards their clients, and said the regulator will strengthen supervisory controls.
How do you think intensified supervisory inspections in 2026 will affect investment firms in Cyprus?