Summary of CySEC's Circular C508
Memo #22-2022
CySEC Circular No: C508
Date: 05/05/2022
Subject: ΕΒΑ Guidelines on internal governance under Directive (EU) 2019/2034 (EBA/GL/2021/14)
Purpose: To remind CIFs that the EBA has published the revised Guidelines on internal governance under Directive (EU) 2019/2034.
In Summary:
CySEC has issued the Circular C508 on 05/05/2022 to remind Cyprus Investment Firms (“CIFs”) that the European Banking Authority (EBA), has published the revised Guidelines on internal governance (‘Guidelines’) under Directive (EU) 2019/2034 (the “IFD”), which was fully incorporated and transposed into the Prudential Supervision of Investment Firms Law of 2021 (the “Law”).
The Guidelines, which were published on 15 March 2022, are intended to further harmonise CIFs’ internal governance arrangements, processes and mechanisms within the EU and are translated in all official languages of the EU.
CySEC notes that these Guidelines apply to national competent authorities (NCAs) and CIFs that do not fall under section 3(3) of the Law and do not meet all of the conditions to qualify as small and non-interconnected investment firms under Article 12(1) of Regulation (EU) 2019/2033, on an individual and consolidated basis.
These Guidelines apply in relation to CIFs’ governance arrangements as required under the Law, including their organisational structure and the corresponding lines of responsibility and also to the processes to identify, manage, monitor and report all risks that they are or might be exposed to.
The Guidelines entered into force on 30, April, 2022.
CySEC further notes that has adopted these Guidelines by incorporating them into its supervisory practices and regulatory approach.
In addition, CySEC notes that CIFs to which these Guidelines apply should take all necessary actions in order to ensure their compliance with the Guidelines.
The Guidelines on internal governance under Directive (EU) 2019/2034 can be found on the following link: https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Guidelines/2021/EBA-GL-2021-14%20Guidelines%20on%20internal%20governance%20under%20IFD/1024534/Final%20Report%20on%20GL%20on%20internal%20governance%20under%20IFD.pdf?retry=1
Read the CySEC Circular C508
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