Cyprus’ Securities and Exchange Commission plans to raise the cost of doing regulated investment business on the island. It has proposed higher application and annual fees for Cyprus Investment Firms, foreign branches and market operators, while also introducing fresh charges for material change notifications and algorithmic trading activity.
The consultation, published Monday, runs until 13 February and sets out a new fee grid that aligns charges more closely with firms’ size, business model and turnover. Additionally, it removes some obsolete items such as a separate crypto‑services approval fee now covered by EU MiCA rules.
Under the proposal, the cost of obtaining a CIF license increases materially. Instead of a flat €7,000 for investment services, firms would pay €8,000 per investment service in most cases, and €15,000 where the business model includes dealing on own account. The fee for services which relate to operating an MTF or OTF, rises to €30,000 from €25,000.
One notable deletion concerns a specialized fee for applications to extend CIF licenses to activities involving cryptocurrency.
The existing €5,000 charge for authorization extensions relating to crypto services disappears from the schedule, as CySEC notes that Regulation on Markets in Crypto‑Assets introduces a harmonized, directly applicable regime for crypto‑asset service providers across all member states, including Cyprus.
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The regulator argues that requiring CIFs to secure separate or additional approval under the national investment services law for crypto activities would therefore be redundant in the MiCA environment.
CIFs must inform the regulator about significant shifts in clientele or market strategy, such as moving from serving only professional clients to offering services to retail clients, or starting to provide investment services in a third country.
For ongoing supervision, CySEC proposes a significant reconfiguration of annual subscription fees. CIFs and third‑country investment firms operating in Cyprus through a branch would pay a higher flat component and steeper turnover-based increments once annual turnover exceeds €500,000, replacing the current lower percentages.
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The flat element linked to firm type and initial capital classification increases, with the standard CIF category seeing a base level rise and investment firms engaging in dealing on own account facing an annual fee of €30,000 for that activity alone.
New Annual Fee for EU Firm Branches
The incremental percentages applied to turnover above €500,000 rise across all brackets. For turnover between €500,001 and €1,000,000, the rate moves to 2%, while the €1,000,001 to €5,000,000 band carries a 1% charge; the €5,000,001 to €10,000,000 segment is charged at 0.5%, and amounts above €10,000,001 at 0.3%.
CySEC’s proposal replaces the existing model for multilateral trading facilities, regulated markets and organised trading facilities, which currently pay a six‑month subscription equal to 11% of specific revenue streams, with fixed annual charges plus turnover-based increments.
In addition to third‑country branches, CySEC introduces an annual fee for branches in Cyprus established by investment firms from other EU member states.
The calculation relies on the same components as for CIFs—the flat element and the turnover-based increment—but multiplies the result by 40%, effectively discounting the amount relative to domestic firms while still bringing these branches into the annual fee net.
CySEC stresses that it will not grant individual extensions and that any responses submitted after 13 February 2026 will not be considered unless the submission period is formally extended through a public announcement.
