On 12 January 2026, the Cyprus Securities and Exchange Commission (CySEC) issued updated consultation papers proposing amendments to the fees payable by entities under its supervision. These proposals aim to align fees with the complexity and scale of operations, reduce reliance on public resources, and enhance CySEC's financial autonomy. Below is a detailed analysis of the key points:

1. Amendments to Fees under the Investment Services and Activities and Regulated Markets Law (L.87(I)/2017)

The amendments apply to Cyprus Investment Firms (CIFs), Market Operators and branches of investment firms from other EU Member States or third countries.

Key changes:

• Annual fees: Several existing fees are to be removed as they no longer apply or have become obsolete through development of the regulatory framework. Revised methodology for calculating fees, including flat fees and turnover-based increments.
• Post-authorisation notifications: Introduction of new notification requirements for material changes (e.g., clientele strategy, expansion to retail clients, outsourcing models) and removal of obsolete obligations.

Fee adjustments:

• Increased fees for applications related to CIF licenses, branch establishments and algorithmic trading.
• Removal of fees for cryptocurrency-related services due to the implementation of the EU's Markets in Crypto-Assets Regulation (MiCAR).

2. Fees for Packaged Retail and Insurance-Based Investment Products (PRIIPs)

This amendments apply to entities manufacturing, advising on or selling PRIIPs, as defined under Regulation EU 1286/2014.

Proposed fees:

• Annual fees for PRIIP manufacturers (EUR 8,000) and advisors or sellers (EUR 4,000).
• Cumulative fees apply if an entity performs both roles.

Fee calculation:

• Entities must submit self-categorisation forms annually in September, with fees due by 30 November, to be paid in full.
• Pro-rata fees apply for licences granted or withdrawn mid-year.

3. Comprehensive fee review

• Objective: To ensure fees reflect the operational scale and complexity of supervised entities while maintaining financial independence.
• Notable proposals:
  • Introduction of a maximum fee cap (EUR 600,000) for CIFs, third-country firms, and Market Operators.
  • Incremental fees based on turnover thresholds, with higher percentages for larger turnovers.
  • Removal of outdated fees, such as those for data reporting service providers.

Implications

• For CIFs and market operators: Increased financial obligations, particularly for entities with higher turnovers or complex operations.
• For PRIIP manufacturers: New annual fees may impact cost structures.
• Regulatory alignment: The removal of cryptocurrency-related fees reflects harmonisation with EU regulations, reducing redundancy.

Stakeholder feedback

Stakeholders are encouraged to review the proposals and provide feedback within the stipulated timeframe.

Deadline: Responses must be submitted by 13 February 2026.

Submission guidelines: Responses should be concise, follow the order of questions in the consultation paper and be submitted in Word format.

The press release can be found here and the consultation papers can be accessed here and here