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CySEC’s 2025 Supervisory Priorities: AI, Fin-fluencers, And Compliance Mandates

by THEFUTURE.TEAM

February 13, 2025

The Cyprus Securities and Exchange Commission (CySEC) has outlined its supervisory priorities for 2025, focusing on emerging regulatory challenges and the evolving financial landscape. Key areas of attention will include artificial intelligence (AI), financial influencers (fin-fluencers), and compliance within fund management operations.

Focus On AI And Fin-fluencers

CySEC aims to adapt to the growing impact of AI on financial markets, as well as the influence of online financial promoters (fin-fluencers). With an increase in supervised entities, now at 834, the regulator is setting stricter compliance expectations for firms. Dr. George Theocharides, CySEC Chairman, emphasized that the supervisory priorities will guide regulated entities to enhance governance, and risk management, and address emerging market risks such as AI adoption and online financial promotions.

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Digital Operational Resilience And MiCA

A major part of the 2025 agenda is the implementation of the Digital Operational Resilience Act (DORA) and the Markets in Crypto-Assets Regulation (MiCA). These regulations aim to strengthen investor protection and ensure market stability. Firms will be required to review their policies, revise internal governance structures, and improve risk management frameworks to comply with these new requirements.

ESG And Technology Investment

ESG compliance remains a critical priority for CySEC in 2025. Firms will need to establish robust sustainability practices and improve reporting and disclosure standards. Additionally, investment in technology will be essential to enhance ICT risk management and ensure operational resilience. CySEC plans to issue circulars and technical documentation to clarify expectations for DORA and MiCA adherence.

Stakeholder Engagement And Interim Reviews

To assist firms in meeting these expectations, CySEC will host workshops and webinars to engage directly with stakeholders. These events will provide practical guidance for compliance and foster a culture of proactive regulation. Interim reviews will also be conducted to assess firms’ progress and provide feedback for continued compliance.

Conclusion

CySEC’s 2025 supervisory agenda reflects its commitment to maintaining market integrity, safeguarding investors, and ensuring that firms can successfully navigate the evolving regulatory landscape. By focusing on AI, fin-fluencers, and sustainable growth, CySEC aims to build a more resilient and transparent financial sector in Cyprus.

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Ermes Transfers ERA Department Stores for Strategic Realignment

by News Editor

May 9, 2025

In a strategic move aimed at restructuring and shedding non-profitable divisions, Ermes Department Stores Plc has announced the transfer of its ERA department stores to Gencom Ltd for a nominal price of €1. While such a figure might raise eyebrows, it aligns with Ermes’ broader objectives of streamlining operations and managing financial sustainability, given the stores report a loss of €1.3 million for 2024.

The deal, pending approval from Cyprus’ Competition Protection Commission, requires Gencom to take on long-term lease contracts and approximately €4.5 million in pending orders for the Spring/Summer 2025 season.

Transferring staff and assets like fixtures and the UNIQUE customer loyalty program ensures a smooth transition. Ermes will maintain a supporting role until late 2025.

Expected to realize a €1 million accounting profit due to IFRS 16 compliance, the transaction should benefit the CTC Group and its shareholders without impacting essential managerial interests. With such strategic shifts, the economic landscape of Cyprus continues to evolve. For more insights on Cyprus’ dynamic markets, read our financial overview.