What is new with the Updated CySEC Self- Assessment Criteria For ‘Significant’ CIFs?


In its latest message to the CIFs, CySEC has outlined what ‘significant’ CIF is. What are the new CySEC Self- Assessment Criteria For ‘Significant’ CIFs?

27 July, AtoZForex The Cyprus Securities and Exchange Commission (CySEC) has sent out a note to the Cyprus Investment Firms (CIFs). As a part of its regulatory activities, CySEC has notified CIFs in regards to the changes to the definition of what is a “significant” CIF.

CySEC Self- Assessment Criteria For ‘Significant’ CIFs

The Cypriot regulator has been very active in its attempts to sustain tight controls over the financial industry across the island. In the latest message to the CIFs, CySEC has outlined what ‘significant’ CIF is. The Cypriot watchdog has stated that if the total assets of the CIF are more than 43 million euros, then the CIF is called a ‘significant’ CIF.

Moreover, the same classification applies to those CIFs, whose annual fees/commission income/turnover over the 12 months immediately prior to the date of the evaluation is more than 50 million euros.

In addition, any firm that possesses client money that worth more than 60 million euros will be considered a significant CIF. The regulator also will consider firms that manage client assets worth more than 2 billion euros as significant CIFs.

CySEC Self- Assessment Criteria For 'Significant' CIFs

Periodical Assessment for CIFs

Additionally, the CySEC states that it CIFs are responsible for doing a periodical evaluation of whether it qualifies as a significant CIF. In case CIF does not qualify, the firm needs to establish and adopt proper inclusive strategies and systems.

In addition, the firm should complete these procedures within 3 months of it reflecting any of the criteria by the regulator. Also, the CIF should inform CySEC promptly once it has been qualified as a significant CIF in its periodical assessment. Furthermore, the firm should submit a new organizational structure to the CySEC.

The Chairwoman of CySEC, Demetra Kalogerou has adopted the stricter stance in regards to the industry participants. These requirements appear as one of the CySEC measures to foster transparent sector relationships. She has decided to clean up and regulate CIFs to assure full compliance with ongoing regulations. The Cypriot authority believes that it can encourage CIFS to self-assess and self-regulate, which would foster highly controlled regulatory ecosystem.

Find the official announcement from CySEC here.

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