Skip to main content
Regulatory

CySEC C442 – Updates regarding the new prudential framework

With the C442 circular, the Cyprus Securities and Exchange Commission (the “CySEC”) wishes to inform the Cyprus Investment Firms (the “CIFs”) about the following updates on the new prudential framework for Investment Firms: 

      1. Updates regarding the new prudential framework for Investment Firms:
        1. The new prudential framework for investment firms, specifically the Regulation (EU) 2019/33 and the Directive (EU) 2019/2034 (the “IFR/IFD”), comes into force on the 26th of June 2021. The CySEC has already provided the CIFs with a related Practical Guide on the 6th of March 2020 through the Circular C355.
        2. The CySEC has also informed the CIFs through the Circular C426 about the seven (7) final draft Regulatory Technical Standards (the “RTS”) which EBA has adopted and submitted for approval to the EU Commission, related to the implementation of IFR and IFD, which can be found here.
        3. The EBA has published on the 5th of March its final draft Implementing Technical Standards (the “ITS”), introducing the final set of reporting templates as well as their reporting and remittance days to the national competent authorities.
        4. The CySEC, despite the fact that is publishing the final and enhanced reporting templates by early June 2021, urges the CIFs to familiarize themselves with the EBA’s final set of reporting templates, as the information that needs to be reported remains the same.
      2. Reporting under IFR/IDR
        1. Reporting Dates:
          CIFs shall submit their reporting requirements to CySEC on the following reference dates:

                1. Quarterly reporting (for Class 2 CIFs): 31 March, 30 June, 30 September and 31 December;
                2. Annual reporting (for Class 3 CIFs): 31 December.

          The first official reporting reference date for Class 2 CIFs, under IFR/IFD, shall be for 30th September 2021, due to be submitted to CySEC by 11th November 2021.
          The first official reporting reference date for Class 3 CIFs, under IFR/IFD, shall be for 31st December 2021, due to be submitted to CySEC on 11th February 2022.
          CIFs that are under consolidated supervision by CySEC should submit both solo and consolidated information, within the deadlines mentioned above and using the same set of reporting templates.

        2. The last period of COREP submission to CySEC under the CRR and CRDIV shall be for the period ended 31st March 2021 (due for submission to CySEC on 12 May 2021). The COREP forms for 31st December 2020, based on the results of the audited financial statements for 2020, which normally should be submitted by the deadline of 31st May 2021, may be submitted with a delay of one (1) month as per CySEC Circular C445.
        3. CIFs, before their first official submission, will have the chance to familiarize themselves with the process and relevant templates by having a testing submission with reporting reference date the 30th of June 2021 and due date for submission to the CySEC by early September 2021. More details for this testing submission will be provided by CySEC at a later stage.
        4. In the meantime, CIFs are advised to review their internal records and systems so as to make the necessary changes, if any, to ensure that the required data for their K-Factors are readily available to calculate their new capital requirements.
      3. CySEC’s Data Collection Exercise
        1. Following the above, CySEC launches a Data Collection Exercise addressed to all CIFs, in order to determine the Class that each CIF will be categorised at, as from 26th of June 2021 when the IFR/IFD comes into force.
        2. Therefore, CIFs are expected to complete the Data Collections Template (the “Template”) and instructions can be found under the “Summary” tab and on the Notes mentioned in the “Data collection” tab. It should be noted that for the purposes of this exercise ONLY, where daily values are not available for the calculation of K-Factors, then a CIF may use weekly or monthly figures.
        3. The completed Template should be submitted to CySEC by 31st May 2021 the latest, only via e-mail at prudential@cysec.gov.cy  with email subject “CIF TRS Code _ IFR Classification”, and the excel file should also have the following naming convention: “CIF TRS Code_IFR Classification”.
        4. CIFs can contact CySEC for any queries regarding the completion of the Template only via e-mail to prudential@cysec.gov.cy.
Read more

Request more information