Updates

With the entry into force of the Investment Firms Regulation (EU) 2019/2033 ("IFR") and Investment Firms Directive (EU) 2019/2034 ("IFD") on 26 June 2021, all Cyprus Investment Firms ("CIFs") authorised under the Investment Services and Activities and Regulated Markets Law of 2017 will be subject to a new prudential regime, different and independent from the Regulation EU No. 575/2013 ("CRR") and Directive DI144-2014-14 which are applicable.

The European Insurance and Occupational Pensions Authority ("EIOPA") published the second paper in a series of papers on the methodological principles of insurance stress testing.

The Cyprus Securities and Exchange Commission (the “CySEC”) hereby draws the attention of the Cyprus Investment Firms (the “CIFs”) to the CNMV’s public statement, regarding certain bad practices in cross-border marketing of investment services by Investment Firms located in other EU countries (the “IFs”).

We would like to inform you that on the 3 rd of December 2020, the House of Representatives has voted for an amendment of article 8(21) of the Income Tax Law.

The present Circular is issued pursuant to section 25(1)(c)(ii) & (iii) of the Cyprus Securities and Exchange Commission Law ("the CySEC Law’).

The Commodity Futures Trading Commission ("CFTC") and the European Securities and Markets Authority ("ESMA") announced the signing of a new Memorandum of Understanding ("MOU") regarding cooperation and the exchange of information with respect to certain registered derivatives clearing organizations established in the United States that are central counterparties ("CCPs") recognized by ESMA under the European Market Infrastructure Regulation ("EMIR").

The United Kingdom exits the European Union’s orbit on Thursday, turning its back on a tempestuous 48-year liaison with the European project for an uncertain Brexit future that will shape the fortunes of its people for generations to come.

The European Banking Authority ("EBA") published an update to the reporting framework 3.0 and the Implementing Technical Standards ("ITS") on institutions’ Pillar 3 public disclosures

The Cyprus Securities and Exchange Commission ("CySEC"), wishes, with this circular, to inform the Regulated Entities, that the European Securities and Markets Authority ("ESMA") issued on November 5, 2020, the official translations in all EU official languages (including translation in the Greek language), of its Guidelines on performance fees in UCITS and certain types of AIFs ("Guidelines") with reference number ESMA34-39-992 EN.

The Cyprus Securities and Exchange Commission ("CySEC"), wishes herein to inform Regulated Entities that redemption of UCITS and AIF units is suspended for the 24 December 2020.

The Cyprus Securities and Exchange Commission ("CySEC"), wishes, herein to remind the Regulated Entities the main provisions of the Securitisation Regulation (EU) No. 2017/2402 (the "Regulation")

Further to our direct taxation newsletter issue 17/2020, we would like to inform you that the Minister of Finance has granted an additional extension to the deadline for submission of the Income Tax Returns (T.D.1) and payment of final tax for the tax year 2019, from 30 November 2020 to 15 December 2020

The Cyprus Securities and Exchange Commission ("CySEC") wishes herein to provide guidance to the Cyprus Investment Firms ("CIFs") on issues relating to crypto assets. This circular deals with the prudential treatment of crypto assets and financial instruments relating to crypto assets, as well as, how the risk management procedures of CIFs should be enhanced.

We would like to inform you that the deadline for the payment of the second temporary tax instalment for the tax year 2020 is on 31st of December 2020.

The European Banking Authority ("EBA") published a Report on the effects of the unwind mechanism of the liquidity coverage ratio ("LCR") over a three-year period, from the end of 2016 to the first quarter of 2020.

Within the scope of its mandate for market supervision and ensuring the compliance of Regulated Entities with the legislation in force, the Cyprus Securities and Exchange Commission ("CySEC"), wishes to inform the Regulated Entities to examine their records in order to identify whether they maintain or have maintained during the last five (5) years, a business relationship with customers and/or customers’ beneficial owners who have acquired, either themselves or their spouses and/or their children, Cypriot citizenship under the Cyprus Investment Program ("CIP").

The Cyprus Securities and Exchange Commission (the "CySEC") wishes with the present Circular to draw the attention of Regulated Entities to their obligation to comply with their EMIR Reporting requirements at all times.

We would like to inform you that on the 02 November 2020, the legislation N.147(I)/2020 (“New Law”) amending the Cyprus VAT Law N95 (I)/2000 (hereafter “the Law”) was published in the Official Gazette of the Government.

The Cyprus Securities and Exchange Commission ("CySEC") whishes to inform about the information to be submitted on the basis of the European Supervisory Authorities ("ESAs") Joint Guidelines on Cooperation and Information Exchange between the Supervisory Authorities of Credit and Financial Institutions - (the ‘’AML / CFT Colleges Guidelines”).

The Cyprus Securities and Exchange Commission ("CySEC") has proceeded (through on-site inspections) to evaluate the policies/procedures established and implemented by AIFMs regarding their compliance with some operational aspects relating to the organisational requirements and the delegation of functions ("the Inspections").

The European Banking Authority ("EBA") published its final draft Regulatory Technical Standards ("RTS") specifying the prudential treatment of software assets.

The European Securities and Markets Authority ("ESMA"), the EU’s securities markets regulator, has updated its public register with the latest set of double volume cap ("DVC") data under the Markets in Financial Instruments Directive ("MiFID II"). For more information please press here.

The present Circular is issued pursuant to section 25(1)(c)(ii) & (iii) of the Cyprus Securities and Exchange Commission Law ("the CySEC Law’").

We would like to inform you that on the 20 August 2020, the legislations N.121(I)/2020 and N.122(I)/2020 (“New Law”) amending the Cyprus VAT Law N95 (I)/2000 (hereafter “the Law”) were published in the Official Gazette of the Government.

The Cyprus Securities and Exchange Commission ("CySEC") wishes to inform the Regulated Entities regarding the new version of the form of the quarterly statistics for the Management Companies and SelfManaged Funds.

The Cyprus Securities and Exchange Commission ("CySEC") recently carried out a review of the quality of information reported to CySEC by AIFMs ("the Review").

The Cyprus Securities and Exchange Commission ("CySEC") wishes, with this circular, to inform the Regulated Entities, that the European Securities and Markets Authority ("ESMA") issued on July 16, 2020, the official translations in all EU official languages (including translation in the Greek language), of its Guidelines on Liquidity Stress Testing ("LST") in UCITS and AIFs ("the Guidelines") with reference number ESMA34-39-897 EN.

The European Securities and Markets Authority ("ESMA"), the EU securities markets regulator, publishes its second Trends, Risks and Vulnerabilities ("TRV") Report of 2020. A webinar open to the public will be held on 9 September to present the report.

The European Securities and Markets Authority ("ESMA"), the EU securities markets regulator, confirms that the 2019 Guidelines on stress test scenarios under the Money Market Funds Regulation ("MMFR") will be updated in 2020 to include a modification of the risk parameters to reflect recent market developments related to the COVID-19 crisis.

The European Banking Authority ("EBA") published 12 indicators and updated the underlying data from the 37 largest institutions in the EU, whose leverage ratio exposure measure exceeds EUR 200 billion.