Summary of CySEC's Circular C424

Memo #02-2021

CySEC Circular No: C424
Date: 21/01/2021
Subject: Requirements of the Spanish Securities and Exchange Commission (‘the CNMV’) regarding the provision of investment services and/or the performance of investment activities in the territory of Spain
Purpose: To draw the attention of the CIFs in certain requirements of the CNMV when provide investment services and/or perform investment activities in the territory of Spain.

In Summary:

CySEC has issued the Circular C424 on 21/01/2021 to inform the Cyprus Investment Firms (the “CIFs”) to the Spanish Securities and Exchange Commission (‘the CNMV’) public statement, regarding certain bad practices in cross-border marketing of investment services by Investment Firms located in other EU countries (the “IFs”).

In particular, the public statement refers to certain inappropriate, common practices followed by some IFs and contains a series of guidelines for due compliance with applicable rules and regulations.

The CNMV’s public statement refers to:

1. Marketing of investment services and client acquisition activities through non-authorised third parties 
2. Promotion of CFD transactions via group entities located in third countries, which are not authorised to operate in the EU

CySEC expects all CIFs that provide investment services in Spain to take, where necessary and by way of urgency, appropriate actions and measures to adhere to the content of the CNMV’s public statement and to the relevant requirements included therein.
 
CySEC highlights that the content of the CNMV’s public statement will form part of CySEC’s supervisory assessments.

The CNMV’s public statement can be found at the following link:

Read the CySEC Circular C424

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