Summary of CySEC's Circular C464

Memo #37-2021
CySEC Circular No: C464

Date: 05/08/2021
Subject: Guide on the implementation of the new prudential framework of Investment Firms (IFD/IFR), publication and testing submission of the new reporting forms under IFD/IFR
Purpose: To inform CIFs that CySEC has issued an updated Practical Guide about the new prudential framework of Investment Firms (IFD/IFR).

In Summary:

CySEC has issued the Circular C464 on 04/08/2021 to inform the Cyprus Investment Firms (CIFs) that CySEC has issued an updated Practical Guide (‘the Guide’) with important information regarding the implementation of the new prudential framework for investment firms (IFR/IFD).

The new prudential framework for investment firms (IFR/IFD) came into force on 26th June 2021.

CySEC notes that Sections I and J of the Guide include important information regarding to concentration risk and liquidity requirements of the CIFs.
 
CySEC also notes that the new Forms that CIFs need to submit to CySEC in regards to their new reporting prudential requirements under IFR/IFD, can be found on the CySEC's website under the section of Prudential Supervision Forms. These Forms can also be found attached on this Circular C464.

In accordance with the Circular C442, the first official reporting reference date under IFR/IFD shall be: 

• 30th September 2021, for Class 2 CIFs (due to be submitted to CySEC by 11th November 2021);

• 31st December 2021, for Class 3 CIFs (due to be submitted to CySEC on 11th February 2022).

CySEC points out that even though no official submissions regarding the period 30th June 2021 will be made to CySEC, the CIFs should continue monitoring their prudential requirements at all times. In particular, CySEC expects CIFs to take at an early stage the measures necessary to address the situation of not meeting their prudential requirements.

This Circular C464 provides also details about the testing submission for all CIFs based on the new reporting forms under IFD/IFR.

The Practical Guide can be found on the following link:


Read the CySEC Circular C464

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