CySEC has issued an announcement outlining the main priorities and supervisory activities for 2021.
List with key priorities and supervisory activities for 2021:
- For Cyprus Investment Firms (CIFs)
1. Continuous monitoring of the compliance of high risk and medium-high risk CIFs with all their regulatory obligations which govern their operations.
2. Monitoring the compliance of medium-to-low and low-risk CIFs, focusing on regulatory areas that entail significant risks to investors or market stability.
3. Analysis of current events related to each sector as a whole and investigating potential drivers of poor outcomes for investors and market stability. Such topics are:
- product governance requirements;
- obligations to provide certain information to clients or potential clients, including marketing communications;
- appropriateness and suitability assessment requirements;
- obligations in regard to the national product intervention measures in relation to the marketing, distribution or sale of CFDs and Binary Options;
- transparency requirements;
- cost and charges requirements;
- governance requirements;
- clients’ funds requirements; and
- enhancing the quality of data for the various reporting regimes.
4. Monitoring the compliance of CIFs with the reporting requirements as required under the MiFIR, EMIR, CSDR, STFR and Securitisation Regulations.
5. Concerning the prudential framework, CySEC will focus on the transition of the CIFs from the existing prudential framework to the new one that will enter into force on the 26th of June 2021. Emphasis will be given by CySEC to the safeguarding of clients’ assets, risk management procedures, and capital adequacy requirements (Pillar I, Pillar II and Pilar III requirements).
- For Managers and collective investment undertakings
1. Monitoring the compliance with their regulatory obligations, with emphasis given on the below regulatory requirements:
- UCITS liquidity risk management requirements;
- UCITS cost and fees requirements focusing on ongoing charges;
- AIF valuation policies and procedures requirements; and
- AIF requirement of raising of minimum capital from investors.
2. Monitoring their compliance with the requirements for reporting the information as referred to in the AIFM Directive (2011/61/EU) and the European Commission Regulation (2013/231).