Summary of CySEC's Circular C442
Memo #18-2021
CySEC Circular No: C442
Date: 21/04/2021
Subject: Updates regarding the new prudential framework for Investment Firms(IFD/IFR) and CySEC’s Data collection exercise
Purpose: To inform CIFs about the prudential framework for investment firms, the reporting requirements and reporting dates and CySEC’s Data collection exercise.
In Summary:
CySEC has issued the Circular C442 on 21/04/2021 to inform the Cyprus Investment Firms (‘CIFs’) about:
A. Updates on the new prudential framework for investment firms (“IFR/IFD”) {Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014 (‘IFR’) / Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019 on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU (‘IFD’)},
B. Reporting under IFR/IDR
C. CySEC’s Data Collection Exercise
The New prudential framework for investment firms comes into force on 26th June 2021 and 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")
CySEC has issued a relevant Circular on 6th March 2020, the Circular C355 and a related Practical Guide, introducing the new prudential framework for investment firms (“IFR/IFD”).
CySEC has also issued on 2nd February 2021, the Circular C426 ‘Updates for the new prudential framework of Investment Firms (IFD/IFR)’ referring to the European Banking Authority’s (‘EBA’) publication of seven (7) final draft Regulatory Technical Standards (RTS) which EBA has adopted and submitted for approval to the European Commission related to the implementation of IFR and IFD.
On 5th March 2021, the EBA published its final draft Implementing Technical Standards (ITS) which it has adopted and submitted for approval to the European Commission on the supervisory reporting and disclosures of investment firms, introducing the final set of reporting templates and also their reporting and remittance days to the national competent authorities. CySEC notes that is currently in the process of enhancing them and intends to publish the new templates that the CIFs will use for the calculation of their prudential requirements based on IFR/IFD, by early June 2021.
CySEC would like to emphasize that all CIFs should start familiarize themselves with the final set of reporting templates issued by the EBA as CySEC’s enhancements will not affect the information that needs to be reported.
This Circular C442 provides information about the reporting requirements to CySEC and the reporting dates.
CySEC informs that it launches a Data Collection Exercise addressed to ALL CIFs, the purpose of which is to determine the Class that each CIF will be categorized at, as from 26th June 2021, when the IFR/IFD comes into force.
Regarding this, CySEC informs that all CIFs are expected to complete the Data Collection Template which can be found on this Circular C442. This Template should be submitted to CySEC via email only. Details are included on this Circular C442. The Template should be submitted to CYSEC the latest by 31st May 2021.
