Nicosia, Cyprus. European financial regulators have renewed calls for stronger EU-level supervision as capital markets become increasingly cross-border and shaped by new technologies. In a joint interview released earlier this month, ESMA President Verena Ross and CySEC Chairman George Theocharides discussed investor protection, financial innovation and Cyprus’s role in the EU market structure.
Supervision and market integration
The discussion, originally published by Philenews, featured Ross outlining ESMA’s three core objectives. She said ESMA’s role is to protect investors, ensure orderly markets and safeguard financial stability across the European Union.
Ross said the consistent application of rules across member states is increasingly important as financial activity becomes more interconnected. She warned that different national interpretations of the same rules can create gaps and inefficiencies, particularly as firms expand across borders and technologies such as crypto-assets and artificial intelligence reshape financial services.
She said stronger EU-level supervision is intended to complement national regulators rather than replace them. According to Ross, EU-level oversight should be used where it offers clear added value.
Investor protection and technology
Ross said investor protection remains central to ESMA’s work. She said efforts are focused on improving clarity and accessibility for retail investors while maintaining strong safeguards across jurisdictions.
On technological change, Ross said innovation, including artificial intelligence, can improve efficiency and risk management but must operate within a firm regulatory framework. She said ESMA supports innovation provided it develops within a robust regulatory and supervisory framework.
Ross added that ESMA follows a technology-neutral approach, meaning existing investor protection rules apply whether decisions are made by humans or supported by algorithms. She also said cybersecurity and digital resilience remain priorities across supervised entities.
Cyprus’s role
Ross said greater integration would benefit smaller member states, including Cyprus, by expanding access to broader investor bases and improving market scale within the EU’s capital markets framework.
Theocharides said Cyprus has a constructive role to play in EU financial integration. He described the country as a smaller financial centre that can help promote a more balanced and inclusive market structure across the bloc.