Summary of CySEC's Circular C513
Memo #25-2022
CySEC Circular No: C513
Date: 19/05/2022
Subject: CIF’s on-going monitoring of their prudential requirements
Purpose: To remind all CIFs for their obligation for on-going monitoring of their prudential requirements.
In Summary:
CySEC has issued the Circular C513 on 19/05/2022 to remind all Cyprus Investment Firms (the ‘CIFs’) of the necessary steps they must take when they no longer meet their own funds requirements and/or concentration limits, as well as their obligation to have sound administrative and accounting procedures and robust internal control mechanisms.
This Circular C513 describes what in particular the CIFs are obliged to comply with regarding the on-going monitoring of their prudential requirements.
CySEC informs that a number of CIFs that have not met the requirements of Article 11 and Article 37 of IFR, have notified CySEC through the normal submission of the Prudential Forms 165-01 or 165-02, which takes place 40 days following the reporting reference date. CySEC notes that this is not acceptable, as CIFs in this case either do not monitor their prudential requirements on an on-going basis or willingly fail to inform CySEC regarding their non-compliance with their prudential requirements.
CySEC also notes that expects to be notified from all CIFs without undue delay and in any case prior to the normal submission of the Prudential Forms 165-01/165-02, when they no longer meet the requirements of Articles 11 and 37 of IFR.
This Circular describes what CySEC also expects from all the CIFs.
Read the CySEC Circular C513
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