Summary of CySEC's Circular C549
Memo #05-2023
CySEC Circular No: C549
Date: 08/02/2023
Subject: Deprioritisation of supervisory actions on the obligation to publish RTS 27 reports after 28 February 2023 in light of the ongoing legislative procedure on the MiFID II/MiFIR review
Purpose: To inform CIFs for the latest development regarding the obligation to publish RTS 27 reports after 28/02/2023.
In Summary:
CySEC has issued the Circular C549 on 02/02/2023 to inform the Cyprus Investment Firms (‘CIFs’) that CySEC adopts ESMA’s approach not to prioritise its supervisory actions towards execution venues on the obligation to publish RTS 27 reports after 28/02/2023.
The EU Directive 2021/338 of 16 February 2021 under the Capital Markets Recovery Package, temporarily suspended the periodic reporting obligation to the public on execution venues in Article 28(3) of the CIF Law until 28/02/2023, as RTS 27 reports are rarely read and do not enable investors and other users to make meaningful comparisons on the basis of the information they contain.
On 25 November 2021, the European Commission published its legislative proposal on the review of the MiFID II/MiFIR, which includes a proposal to delete the RTS 27 reporting obligation. This said proposal is currently subject to a legislative procedure by the European Parliament and the Council of the EU which is unlikely to be concluded by 28/02/2023 (i.e., by the expiration date of the temporary suspension of the RTS 27 reporting obligation).
It is noted that it is expected the re-application, after 28/02/2023, of the obligation for the RTS 27 reporting will be only temporary (until the reviewed MiFID II Directive would apply). {Under the assumption that the co-legislators would agree in the context of the MiFID II/MiFIR review to delete the RTS 27 reporting requirement}
The European Securities and Markets Authority (‘ESMA’) issued on 14/12/2022, a Public Statement to promote coordinated action by National Competent Authorities (NCAs) from 01/03/2023 until the forthcoming legislative amendment to Article 27(3)2 of MiFID II applies (deletion of RTS 27 reporting obligation).
CySEC informs that taking into consideration the ESMA’s public statement as well as the implications emerged from the re-application of the RTS 27 reporting obligation for a short period and in order to ensure that the RTS 27 reporting requirements and supervisory practices in Cyprus are aligned with those in the EU, CySEC adopts ESMA’s approach on the relevant matter.
ESMA’s Public Statement can be found on the following link:
Read the CySEC Circular C549
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