In order to incorporate the changes that have taken place following the introduction of the new prudential framework for investment firms (IFR/IFD), CySEC has issued the Circular 518, in accordance with which:
A. The prudential Form 165-03 “Prudential Supervision information” updates and replaces the Form 144-14-11 which has been introduced via CySEC’s Circular C326, the purpose of which is to collect relevant information by the CIFs in order to facilitate CySEC’s supervisory role in the areas of:
- the assessment of Internal Capital Adequacy Assessment Process (ICAAP) and Internal Liquidity Adequacy Assessment Process (ILAAP),
- the assessment of audited financial statements,
- the safeguarding of clients’ money.
The Form 165-03 is addressed to all CIFs and can be found here.
The CIFs should complete the Form 165-03 once a year and submit it to CySEC ONLY via the Transaction Reporting System (‘TRS’). The deadline to submit the Form 165-03 is the 30th of June each year.
CySEC notes that for the submission for the year ended 31/12/2021 the CIFs should submit the Form 165-03 via TRS by 30th July 2022.
B. The CySEC wishes to facilitate the CIFs when requesting CySEC’s permission with reference to the Regulation (EU) 2019/2033 (‘IFR’), Regulation (EU) 575/2013 (‘CRR’) and Law L.165(I)/2021, where applicable, in the following areas:
- Application for interim profit recognition
- Application for liquidity reduction
For this purpose, CySEC has introduced the new prudential Form 165-04. The CIFs that wish to request CySEC’s permission, for any of the areas mentioned above, should complete only the relevant Section(s) of the Form 165-04 for which the permission is requested and submit it to CySEC via TRS. The remaining sections not applicable for the CIF should be left empty.
The Form 165-04 is addressed to all CIFs and can be found here
The steps that CIFs need to follow for the successful submission of the Forms 165-03 and 165-04 via TRS can be found here.
CySEC’s notes that Circular C305 regarding interim profit recognition continues to remain in force but CySEC’s permission should only be requested via the submission of the Form 165-04 via TRS.