Summary of CySEC's Circular C504

Memo #19-2022
CySEC Circular No: C504
Date: 27/04/2022
Subject: ESMA Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements (ESMA35-43-3006)
Purpose: To inform Regulated Entities that the ESMA has published the Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements.

In Summary:

CySEC has issued the Circular C504 on 27/04/2022 to inform the Cyprus Investment Firms (CIFs) and the Alternative Investment Fund Managers (AIFMs) when providing services pursuant to section 6(6)(b)(ii) of the AIFM Law 56(I)/20013, that the European Securities and Markets Authority (ESMA) has published the Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements (the ‘Guidelines’) on April 14, 2022.

CySEC notes that these Guidelines apply to national competent authorities (NCAs), CIFs and AIFMs.

The purpose of these Guidelines is to clarify the application of certain aspects of the MiFID II appropriateness and execution-only requirements in order to ensure the common, uniform, and consistent application of the MiFID II appropriateness and execution-only requirements. 

The Guidelines apply from six months of the date of publication of the guidelines on ESMA’s website in all EU official languages, i.e. 13 October 2022.

CySEC informs that it adopts these Guidelines by incorporating them into its supervisory practices and regulatory approach.

The Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements can be found on the following link: https://www.esma.europa.eu/sites/default/files/library/esma35-43-3006_gls_on_certain_aspects_of_the_mifid_ii_appropriateness_and_execution-only_requirements_en.pdf 

Read the CySEC Circular C504

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