Read the CySEC Circular C651
Memo #37-2024
CySEC Circular No: C651
Date: 09/07/2024
Subject: Thematic Review on the handling of clients’ uninvested funds by CIFs
Purpose: To inform CIFs that CySEC is launching a thematic review regarding the handling of uninvested funds held by CIFs on behalf of their (potential) clients.
In Summary:
CySEC has issued the Circular C651 on 09/07/2024 to inform the Cyprus Investment Firms (‘CIFs’) that is launching a thematic review regarding the handling of uninvested funds held by CIFs on behalf of their (potential) clients, including the payment of interest or returns on these uninvested funds (‘the Exercise’).
CySEC notes that the aim of this Exercise is to assess, with relevant regulatory requirements, the handling by CIFs of uninvested funds that are held by CIFs on behalf of their (potential) clients, including the payment of interest or returns on these uninvested funds.
CySEC further notes that the Exercise will cover, among other aspects:
1) The methods and arrangements CIFs employ in this activity.
2) The information provided to clients, including the terms of the agreement signed between the parties.
3) The controls CIFs implement to ensure adherence to all relevant regulatory requirements, including those pertaining to marketing communications. These include the requirements laid down in articles 5(5), 17(2), 17(4), 17(9), 25(1) and 25(3) of Law 87(I)/2017, as well as articles 21, 44, 46(5) and 49 of MiFID II Delegated Regulation 565.
CySEC further informs that the Exercise will be conducted via a desk-based review method on a sample of CIFs. CySEC will send a relevant questionnaire to selected CIFs and these CIFs will be required to complete and return the questionnaire to CySEC within a specified timeframe, accompanied by supporting documents. CySEC will issue a relevant circular detailing the findings of this Exercise, upon completion of the Exercise.
Read the CySEC Circular C651
Read more news at Regulatory News
