Summary of CySEC's Circular C379
Memo #27-2020
CySEC Circular No: C379
Date: 09/04/2020
Subject: Population data collection by the European Banking Authority regarding the new prudential framework for investment firms
Purpose: To inform CIFs for a mandatory submission to CySEC of a population data template.
In Summary:
CySEC has issued the Circular C379 on 08/04/2020 in order to inform the Cyprus Investment Firms (CIFs) that CySEC is requested to submit to the European Banking Authority (EBA) a population data template (the Template) with a few core data points on the whole population of CIFs, therefore all CIFs are requested to fill in and submit the Template to CySEC, using the guidelines set in the Template.
It is noted that this data collection exercise is mandatory for all CIFs.
The Template is in Excel form and can be found on the Circular C379.
On 6th March 2020, CySEC issued the Circular C355 ‘New prudential framework for investment firms’, and a related Practical Guide introducing the new prudential framework for investment firms, which will replace the existing prudential requirements of investment firms, currently set out in the Regulation (EU) No. 575/2013 on prudential requirements for credit institutions and investment Firms (the "CRR") and the European Directive 2013/36/EU (the "CRD IV").
The new prudential framework, which comprises of the Regulation (EU) 2019/2033 (IFR) and Directive (EU) 2019/2034 (‘IFD’), will come into force on 26th June 2021.
The EBA has a mandate, based on Art.54 and 55 of the IFR, to develop the reporting requirements for IFs, in terms of own funds, levels of minimum capital, concentration risk, liquidity requirements, level of activity in respect of small and non-interconnected IFs (class 2) and the other reporting requirements.
It is noted that CIFs should report with a ‘yes/no’ answer in Column Z of the Template (tab ‘Population’) whether they intend to participate in the upcoming ‘EBA Investment Firm data collection’ which will be launched in the coming months. CySEC urges CIFs to participate in this data collection otherwise if the number of CIFs is not adequate, CySEC will select itself additional CIFs in order to target a sample that is balanced in terms of size, business models/investment services and activities, group structure and geographical location.
It is also noted that CIFs should fill in the Template and submit it to CySEC via email only at the electronic address crdSubmission@cysec.gov.cy, quoting as email subject: ‘(CIF Name) – EBA Template’ and that the excel file Template should have the following naming convention: “XX_EBA Template” (XX represents CIF’s TRS Code) when submitted to CySEC.
The Template should be completed and submitted to CySEC the latest by 15th May 2020.
The Regulation (EU) 2019/2033 (IFR) can be found on the following link: https://www.cysec.gov.cy/cmsctx/culture/en-GB/-/CMSPages/GetFile.aspx?guid=5dc1f5cb-36bc-415c-9249-2fcb6bf9d381
The Directive (EU) 2019/2034 (IFD) can be found on the following link: https://www.cysec.gov.cy/cmsctx/culture/en-GB/-/CMSPages/GetFile.aspx?guid=08f5eafd-6a90-496b-8eb5-2e53ca58df4a
Read the CySEC Circular C379
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