Summary of CySEC's Circular C578
Memo #32-2023
CySEC Circular No: C578
Date: 06/06/2023
Subject: ESMA35-43-3565 - Guidelines on certain aspects of the MIFID II remuneration requirements
Purpose: To inform the CIFs, UCITS MC and AIFMs that ESMA published the Guidelines on certain aspects of the MiFID II remuneration requirements.
In Summary:
CySEC has issued the Circular C578 on 06/06/2023 to inform Cyprus Investment Firms (CIFs), UCITS management companies when providing the investment services of individual portfolio management or non-core services (within the meaning of Article 6(3)(a) and (b)(i) of UCITS Directive) and the Alternative Investment Fund Managers when providing the investment services of individual portfolio management or non-core services (within the meaning of Article 6(4)(a) and (b)(i) of the AIFMD), that the European Securities and Markets Authority (ESMA) published, on 03/04/2023, the Guidelines on certain aspects of the MiFID II remuneration requirements (the ‘Guidelines’), translated in all official languages of the EU.
CySEC notes that the Guidelines apply in relation to the remuneration requirements set out in Article 27 of the MiFID II Delegated Regulation as well as, on the one hand, the conflicts of interest requirements set out in Articles 16(3) and 23 of MiFID II and Article 34 of the MiFID II Delegated Regulation in the area of remuneration; and on the other hand, the conduct of business rules set out in Article 24(1) and (10) of MiFID II. Also, the Guidelines clarify the application of the governance requirements in the area of remuneration under Article 9(3) of MIFID II.
CySEC further notes that the Guidelines apply as from 06/11/2023.
In addition, CySEC informs that the Guidelines on remuneration policies and practices (MiFID) {ESMA/2023/606}, issued under MiFID I, will cease to apply on the same date.
CySEC further informs that it has adopted the Guidelines by incorporating them into its supervisory practices and regulatory approach and urges the Regulated Entities to carefully study the Guidelines and ensure that they fully comply with them.
The ESMA Guidelines on certain aspects of the MiFID II remuneration requirements can be found on the following link:
Read the CySEC Circular C578
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