Read the CySEC Circular C600
Memo #53-2023
CySEC Circular No: C600
Date: 27/09/2023
Subject: Joint EBA and ESMA Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) under Directive (EU) 2019/2034 (EBA/GL/2022/09, ESMA35-36-2621)
Purpose: To inform the CIFs that CySEC has adopted the Joint EBA and ESMA Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) under Directive (EU) 2019/2034.
In Summary:
CySEC has issued the Circular C600 on 27/09/2023 to inform the Cyprus Investment Firms (‘CIFs’) that it has adopted the Joint EBA and ESMA Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) under Directive (EU) 2019/2034 (the ‘Guidelines’), under section 29 of the Prudential Supervision of Investment Firms Law of 2021, which transposes Article 36 of the Directive (EU) 2019/20341(the “IFD”).
The Guidelines were published on 20/07/2022 and apply from 19/06/2023.
Supervisory review and evaluation process (SREP) is one of the main tools for supervision, through which competent authorities form a comprehensive view on the business model and risk profile of the supervised entity, as well as its overall viability and sustainability.
CySEC further informs that the Guidelines specify the common procedures and methodologies for the functioning of the supervisory review and evaluation process (SREP) referred to in Articles 36 and 45 of IFD and processes and actions taken with reference to Articles 39, 40, 41 and 42 of IFD.
In addition, CySEC informs that the Guidelines apply in relation to the supervisory review and evaluation process (SREP) of the investment firms as defined in Articles 36 to 45 of Directive (EU) 2019/2034 and are applicable to the SREP exercises initiated in 2023.
The Joint EBA and ESMA Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) 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/2022/EBA-GL-2022-09%20GL%20on%20SREP%20for%20IF/1037290/Final%20report%20on%20SREP%20guidelines%20under%20IFD.pdf
The Prudential Supervision of Investment Firms Law of 2021 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 C600
Read more news at Regulatory News
