In its latest attempt to ensure the soundness and safety of financial markets, CySEC requires CIFs authorization in third countries. All CIFs are required to inform the regulator about their legal status in the third countries where they intend to operate.
8 February, AtoZForex – The Cypriot regulator of the financial services markets, the Cyprus Securities and Exchange Commission (CySEC) has issued a circular for Cyprus Investment Firms (CIFs) on its official website today.
CySEC Requires CIFs Authorization in Third Countries
The Cypriot watchdog has published a circular called “Provision of investment and ancillary services and/or performance of investment activities in a third country“. Via this announcement, the CySEC wishes to inform CIFs that intend to provide investment and ancillary services and to perform investment activities in the territories of third countries.
The official publication of the CySEC mentions the following points in regards to the CIFs:
- CIFs wishing to provide and/or perform the above-mentioned services and activities in third countries, must notify CySEC via a letter of their intention to do so.
- Prior to providing/performing the said services/activities in third countries, CIFs need to acquire the necessary authorisation by the respective competent Authorities of the third countries, in accordance with their legislative framework.
- CIFs should provide CySEC with a certified copy of the authorisation for the provision of these services by the competent Authority of the third country.
- In case that the third country does not require such authorization, the CIF must provide CySEC with a legal opinion issued by a qualified lawyer or a legal firm of the relevant jurisdiction that no such authorisation is required or a certified copy of the legal opinion.
CIFs Must Notify CySEC About their Authorization
Another point of CySEC’s latest announcement notes that the letter mentioned in the first point must include a list of third countries where the CIF plans to provide investment and ancillary services and/or perform investment activities. The letter should also mention whether the CIF has obtained the valid authorization by the competent authority or a legal opinion that no authorization is needed for each country.
Following on this, CySEC states that CIFs are responsible to obtain such authorization by the competent authorities of the third countries. They also must file this data in the Portal and inform CySEC in writing of any changes to the third country they operate in.
Finally, the Cypriot regulator states that all existing and newly established CIFs need to post on their websites the information on third countries in which they operate.
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