The effective date of MiFID II is approaching and it will an impact on the financial markets across multiple areas. To aid the CIFs in Cyprus, CySEC informs Forex Brokers MiFID II EU Passporting changes.
25 August, AtozForex – CySEC regulated Forex brokers are facing fundamental changes to its operations ahead the implementation of MiFID II on the 3rd of January 2018. Now, that the effective date nears CySEC decided to lend its aid to all of the CIFs within its jurisdiction.
Through the latest circular C233, CySEC informs Forex Brokers MiFID II EU passporting changes. Furthermore, the Cyprus regulator advises the CIFs upon the obligations in regards to new passport notification process and forms.
Increased scope of MIFID II passporting regime
In comparison to current MiFID passporting regime, the scope of MiFID II passporting regime will broaden to a larger range of services, financial instruments and activities. CySEC’s latest circular “C233” is meant for all CIFs that want to:
- Operate an Organised Trading Facility
- Perform services in relation to the new financial instrument emission allowances
- Fall within the revised exemptions under MiFID II and the Law (see part 5 of the Appendix of the Announcement issued on April 11, 2017),
- Need to be authorized to deal on own account. As a result of the scope of that being extended to include matched principal trading,
- Proceed the current passporting services in relation to derivatives of emission allowances. And their passport does not include the financial instruments of number 4 Part III, First Appendix of the Law.
What are the Forex Brokers MiFID II EU Passporting changes?
What are according to CySEC the most important changes to the current EU passporting?
“One of the main changes in relation to cross border services passports is that investment firms will be required to submit one passport notification. That is for each member state in which they intend to provide cross-border services. The new legislative framework introduces revised forms for the notifications relating to the freedom to provide services in another member state. The establishment of a branch, as well as the appointment of a tied agent in member states.”
Is the current passporting form still applicable? No, CySEC informs that:
“New notification forms are introduced, in relation to the provision of arrangements to facilitate access to an MTF or OTF. The termination of the operation of a branch or cessation of the use of a tied agent established in another EEA state or in the Republic. For more information on the above and the main changes relating to the passport notification process please see the Announcement on MiFID II Main changes in relation to passporting issues and new notification forms, issued on August 11, 2017.”
Action plan and forms for CySEC regulated Forex Brokers
CySEC has shared all the relevant forms for CIFs that wish to amend their existing passport. The Cyprus regulator can only advise that: “All CIFs should consider whether their existing Passport licenses/ authorisations required to be amended under the scope of Law 87 (Ι)/2017. Submit the new Passport notifications until 29 September 2017 using the new forms available on CySEC’s website.”
- Notification of intention to freely provide/perform services/activities in another member state (EEA) (Form 87-00-04),
- Form to notify for the provision of arrangements to facilitate access to an MTF or OTF (Form 87-00-05),
- Notification of intention to establish a branch in another EEA state (Form 87-00-06),
- Form to notificate intention to use a tied agent established in another EEA state and change of tied agent particulars (Form 87-00-07),
- Notification of the termination of the operation of a branch or cessation of the use of a tied agent established in another EEA state or in the Republic (CySEC Form 87- 00-08).
Additional important CySEC CIFs deadlines
Other deadlines that CIFs have to take into consideration before the end of 2017, are set out below:
- CIFs that intent to establish a branch or appoint a tied agent are urged to submit the relevant notifications. (Forms 87-00-06 and 87-00-07) No later than 3 November 2017.
- “Please note that the requirement in point (a) above applies only to amended passports that will be applicable as of 3 January 2018. All other passporting notifications made until 8 December 2017 shall be submitted as usual using the existing Forms. From 11 December 2017 all notifications shall be submitted using the new forms listed above.”
Last but not least, all the above mentioned and other related forms for the Forex Brokers MiFID II EU Passporting changes are available on CySEC’s website. Bear in mind that they are subject to revision or changes.
If you have any pending questions related to MiFID II. Let us know in the comments section below.