Summary of CySEC's Circular C487
Memo #05-2022
CySEC Circular No: C487
Date: 10/02/2022
Subject: Redefining threshold criteria of 'significant CIF'
Purpose: To inform the CIFs that CySEC has redefined the threshold criteria that determines a ‘significant CIF’.
In Summary:
CySEC has issued the Circular C487 on 10/02/2022 to inform the Cyprus Investment Firms (the “CIFs”) that CySEC has redefined the threshold criteria that determines a ‘significant CIF’ for the purposes of the Investment Services and Activities and Regulated Markets Law of 2017, as amended, (‘The Investment Services Law’) in light of a new prudential framework for investment firms (IFR/IFD).
CIFs must note that this Circular C487 updates and replaces the Circular C228, issued on 26 July 2017, regarding the threshold criteria for determining which Cyprus Investment Firms (CIFs) are considered a ‘Significant CIF’.
This Circular C487 refers to the:
• Limitations on directorships and establishment of nominations committee. (Reference on Section 9(4) of the Investment Services Law)
• Establishment of remuneration and risk committees. (Reference on Section 10(2)(a) of the Investment Services Law)
• Definition of a ‘significant CIF’ for the purposes of Investment Services Law. (Reference on Section 22(4) of the Prudential Law)
• Frequency of assessment to determine whether the CIF becomes a ‘significant CIF’. (Reference on Section 27 of the Prudential Law)
The Law 165(I)/2021 on the prudential supervision of investment firms can be found on the following link: https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=7f44e19e-f8a1-4550-a7f9-7f1435297a3d
Read the CySEC Circular C487
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