Summary of CySEC's Circular C381

Memo #29-2020

 CySEC Circular No: C381
Date: 14/04/2020

Subject: Pillar III disclosures in light of COVID-19
Purpose: To clarify about the publication of Pillar III Disclosures and External Auditors’ verification report on Pillar III Disclosures.

In Summary:

CySEC has issued the Circular C381 on 14/04/2020 in order to provide to the Cyprus Investment Firms (CIFs) clarifications about the publication of Pillar III Disclosures and External Auditors' verification report on Pillar III Disclosures.

1. For the publication of Pillar III Disclosures:

CySEC notes that will not prioritise its supervisory actions towards CIFs in respect to their compliance with the obligation that “Annual disclosures shall be published in conjunction with the date of publication of the financial statements” (article 433 of the Regulation EU No. 575/2013 {‘the CRR’}) for the year ending on 31st December 2019, as of 01/05/2020 – 31/07/2020, taking into consideration that the remittance date of the annual audited financial statements for 2019 has been extended up to 31st July 2020.

2. For the External Auditors’ verification report on Pillar III Disclosures:

The CIFs are responsible to submit their external auditors’ verification report to the Commission the latest within five months from the end of each financial year.

Here, the CySEC notes that CySEC will not prioritise its supervisory actions towards CIFs in respect to their compliance with the abovementioned obligation for the year ending on 31st December 2019, as of 01/06/2020 – 31/08/2020. 

This Circular also refers that CySEC expects that the affected CIFs:

i. Will assess the need for additional disclosures in their Pillar III disclosures that may be necessary in order to properly convey the risk profile of the CIF in the context of the COVID 19 outbreak.

ii. Which anticipate that the publication of their Pillar III disclosures will be delayed, will inform the market participants for that delay, the reasons of delay and, to the extent possible, their estimated publication date.

Read the CySEC Circular C381

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