Cyprus Securities and Exchange Commission regulatory priorities for the second half of 2018

The Cyprus Securities and Exchange Commission (CySEC) has recently announced its main priorities for the second half of 2018 in the context of its regulatory responsibilities to ensure maximum investor protection and the healthy development of the securities market.

CySEC’s principal objective for 2018 is to establish, monitor and sustain a healthy and stable environment for the securities industry. It has identified the following priority areas for the second half of the year:

 

  • MiFID II requirements;
  • requirements regarding packaged retail investment and insurance products;
  • requirements under the European Market Infrastructure Regulation;
  • prudential requirements.

During the first half of 2018, CySEC carried out thematic reviews on the product governance requirements under MiFID II. Its action plans for the second half of the year will focus on ensuring that Cyprus Investment Firms are fully complying with the requirements of MiFID II, by monitoring their progress and assisting them with implementation. Targeted visits, full risk assessments and thematic reviews will be used to facilitate this process, paying particular attention to organisational requirements, including governance arrangements, inducements and remuneration, costs and charges, appropriateness of products and services, best execution of orders, communications addressed to clients, including marketing communications, and transaction reporting and transparency.

In addition, CySEC will place emphasis on ensuring the financial soundness of CIFs and compliance with their prudential requirements, particularly as regards safeguarding of clients’ funds, risk management and capital adequacy.

For further information on this matter please contact Dimitris Papoutsis or your usual contact at Elias Neocleous & Co LLC.