Read the CySEC Circular C688
Memo #14-2025
CySEC Circular No: C688
Date: 12/03/2025
Subject: ESMA launches a Common Supervisory Action (‘CSA’) with NCAs on Compliance and Internal Audit Functions
Purpose: To inform the Cyprus Investment Fund Managers that the ESMA has launched the 2025 Compliance and Internal Audit Functions CSA.
In Summary:
CySEC has issued the Circular C688 on 11/03/2025 to inform the Cyprus UCITS Management Companies and Self-Managed Cyprus UCITS (‘CyUCITS MCs’) and the Cyprus Alternative Investment Fund Managers and Self-Managed AIFs, including Cyprus sub-threshold AIFMs and Self-Managed AIFs (‘CyAIFMs’), that the European Securities and Markets Authority (ESMA) has launched the 2025 Compliance and Internal Audit Functions CSA with national competent authorities (NCAs), on compliance and internal audit functions of UCITS management companies and Alternative Investment Fund Managers (AIFMs) across the EU.
It is noted that the aim of the 2025 CSA is to:
i. to assess to what degree UCITS management companies and AIFMs have established effective compliance and internal audit functions with adequate staffing, authority, knowledge, and expertise to perform their duties under the AIFM and UCITS Directives,
ii. to assess whether compliance and internal audit functions are designed to ensure that the internal control mechanisms to monitor, identify, measure, and mitigate any possible risks of non-compliance with the applicable rules, are in place.
CySEC further informs that it has recently initiated a targeted thematic review, comprising both on-site inspections and desk-based reviews, on a representative sample of Cyprus Investment Fund Managers (CyIFMs).
CySEC notes that it expects CyIFMs to take all necessary measures to ensure full compliance with their legal and regulatory obligations regarding the compliance and internal audit functions.
The ESMA 2025 Compliance and Internal Audit Functions CSA can be found on the following link:
Read the CySEC Circular C688
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