Summary of CySEC's Circular C553
Memo #08-2023
CySEC Circular No: C553
Date: 14/03/2023
Subject: Guidelines on certain aspects of the compliance function requirements
Purpose: To provide guidance on the application of certain aspects of the compliance function requirements.
In Summary:
CySEC has issued the Circular C553 on 14/03/2023 to provide guidance to Cyprus Investment Firms, UCITS Management Companies (UCITS) and Alternative Investment Fund Managers (AIFMs), on the application of certain aspects of the compliance function requirements provided in article 17(2) of the Investment Services and Activities and Regulated Markets Law (‘the Law’) and Article 22 of the MiFID II Delegated Regulation 2017/565.
For UCITS Management Companies (UCITS), the guidance applies when providing services pursuant to section 109(4) of Law 78(I)/2012, as in force (the ‘UCITS Law’).
For Alternative Investment Fund Managers (AIFMs), the guidance applies when providing services pursuant to section 6(6) of Law 56(I)/20013, as in force (the ‘AIFM Law’).
The guidance is provided in order to ensure the common, uniform and consistent application of these legal requirements.
The guidance covers the following aspects of the compliance function:
A. Responsibilities of the compliance function
Guideline 1: Compliance risk assessment
Guideline 2: Monitoring obligations of the compliance function
Guideline 3: Reporting obligations of the compliance function
Guideline 4: Advisory and assistance obligations of the compliance function
B. Organisational requirements of the compliance function
Guideline 5: Effectiveness of the compliance function
Guideline 6: Skills, knowledge, expertise and authority of the compliance function
Guideline 7: Permanence of the compliance function
Guideline 8: Independence of the compliance function
Guideline 9: Proportionality with regard to the effectiveness of the compliance function
Guideline 10: Combining the compliance function with other internal control functions
Guideline 11: Outsourcing of the compliance function
C. Competent authority review of the compliance function
Guideline 12: Review of the compliance function by the competent authorities.
It is noted that this Circular C553 should be read with Circular C447. It is further noted that Circulars C030 and C050 are repealed and replaced by this Circular C553.
The Circular C447 can be found on the following link:
Read the CySEC Circular C553
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