Read the CySEC Circular C662
Memo #47-2024
CySEC Circular No: C662
Date: 23/10/2024
Subject: Adoption of the European Βanking Αuthority (the ‘EBA’) Guidelines on the application of the group capital test for investment firm groups in accordance with Article 8 of Regulation (EU) 2033/2019 (the ‘IFR’)
Purpose: To bring to the attention of the CIFs the EBA Guidelines regarding the application of the group capital test for investment firm groups in accordance with Article 8 of IFR.
In Summary:
CySEC has issued the Circular C662 on 22/10/2024 to bring to the attention of the Cyprus Investment Firms (the “CIFs”) the EBA Guidelines on the application of the group capital test for investment firm groups in accordance with Article 8 of Regulation (EU) 2033/2019 [IFR] (the “Guidelines”).
CySEC informs that it has adopted the Guidelines by incorporating them into its supervisory practices and regulatory approach.
The Guidelines apply from 01/01/2025.
The Guidelines specify how competent authorities should implement Article 8(1) and Article 8(4) of IFR to allow investment firm groups to apply the group capital test (‘group capital test permission’), or to hold a lower amount of own funds than the amount calculated under Article 8(3) of IFR (‘lower amount permission’).
The Guidelines apply on an individual and consolidated basis within the scope set out in Article 8 of IFR and are addressed to investment firms that are within the scope of IFR and Directive (EU) 2019/2034 (the ‘IFD’).
The Circular C662 provides information regarding the Guidelines application and what the Guidelines specify.
CySEC further informs that in case a CIF, which falls under consolidated supervision by CySEC, wishes to implement Article 8(1) and Article 8(4) of IFR or to hold a lower amount of own funds than the amount calculated under Article 8(3) of IFR it should submit a relevant request including the information outlined in section “4.6 Information to be assessed” of the Guidelines via CySEC’s portal under “IFR group capital test permission”.
The EBA Guidelines can be found on the following link:
Read the CySEC Circular C662
Read more news at Regulatory News
