Read the CySEC Circular C603
Memo #57-2023
CySEC Circular No: C603
Date: 13/10/2023
Subject: ESMA Guidelines on MiFID II product governance requirements (ESMA35-43-3448)
Purpose: To inform Regulated Entities that the ESMA published the Guidelines on MiFID II product governance requirements.
In Summary:
CySEC has issued the Circular C603 on 12/10/2023 to inform the Cyprus Investment Firms (‘CIFs’), UCITS Management Companies (‘UCITS MC’) 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 (‘AIFMs’) 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 the Guidelines on MiFID II product governance requirements (the ‘Guidelines’).
The purpose of the Guidelines is to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision and to ensure the common, uniform and consistent application of the MiFID II requirements on product governance.
The Guidelines published on 03/08/20/23 and apply from 03/10/2023.
The Guidelines apply to Firms and to Competent Authorities.
The Guidelines apply in relation to the manufacturing or distribution of financial instruments and structured deposits. In particular, the Guidelines apply in relation to the following requirements:
• Article 9(3) of Directive 2014/65/EU1 (MiFID II);
• Article 16(3) and 16(6) of MiFID II;
• Article 24(1) and 24(2) of MiFID II;
• Articles 9 and 10 of the Commission Delegated Directive (EU) 2017/5932 (MiFID II Delegated Directive).
CySEC further informs that it has adopted the Guidelines by incorporating them into its supervisory practices and regulatory approach.
CySEC urges the Regulated Entities to read the Guidelines carefully and apply them where and when required.
The ESMA’s Guidelines can be found on the following link: https://www.esma.europa.eu/sites/default/files/2023-08/ESMA35-43-3448_Guidelines_on_product_governance.pdf
Read the CySEC Circular C603
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