Read the CySEC Circular C758
Memo #10-2026
CySEC Circular No: C758
Date: 09/03/2026
Subject: ESMA launches a Common Supervisory Action with NCAs on MiFID II conflicts of interest requirements
Purpose: To inform CIFs that the ESMA has launched a Common Supervisory Action for 2026 with national competent authorities on the conflicts of interest in the distribution of financial instruments.
In Summary:
CySEC has issued the Circular C758 on 05/03/2026 to inform the Cyprus Investment Firms (CIFs) that the European Securities and Markets Authority (“ESMA”) has launched a Common Supervisory Action for 2026 (“CSA 2026”) with national competent authorities (“NCAs”) on the conflicts of interest in the distribution of financial instruments.
The goal of the CSA 2026 will be to assess how firms comply with their obligations under MiFID II to identify, prevent, and manage conflicts of interest when offering investment products to retail clients.
CySEC further informs that in the context of the CSA 2026, it is planning to conduct on-site visits and/or desk-based reviews on a sample of CIFs that fall within the scope of the said CSA, that provide investment services to retail clients and will focus on:
• The possible impact of staff remuneration and inducements on what products are offered to investors.
• The role of digital platforms in directing investors towards certain products, and whether this serves their best interests.
• The ways firms manage potential conflicts between their own profits and the needs of retail investors.
CySEC notes that for the purposes of the CSA 2026, it will consider the following regulatory framework:
a. Articles 10(1)(c)(iii), 17(2), 17(3), 24 and 25 of the Law 87(I)/2017.
b. Articles 22, 23, 24, 27, 33, 34 and 35 of the Commission Delegated Regulation (EU) 2017/565.
c. Articles 11(3) and 13 of the CySEC Directive DI87-01.
d. ESMA Guidelines on certain aspects of the MiFID II remuneration requirements.
CySEC further notes that it expects CIFs to adhere to the content of Circular C758 as it will form part of CySEC’s supervisory review for the purposes of the CSA 2026.
Read the CySEC Circular C758
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