Global Law Experts Logo
GLE-PP

Find a Global Law Expert

Specialism
Country
Practice Area
awardsr

Awards

Since 2010, the Global Law Experts annual awards have been celebrating excellence, innovation and performance across the legal communities from around the world.

Annual reporting obligations of Cyprus Investment firms

posted 8 years ago

The Cyprus Securities and Exchange Commission (the “Commission”) is the responsible authority ensuring that Cyprus Investment Firms (CIFs) comply with all the requirements as set out in the Investment Services and Activities and Regulated Markets Law of 2007, as in force (the “Law”) and the relevant Directives.

CIFs shall submit to the Commission all the reports described herein for the assessment of their compliance with the legal requirements and rules of the relevant Directives. This guidance elaborates on the annual reporting requirements of CIFs with regards to their capital adequacy, shareholding and financial status, as well as measures in force for the prevention of money–laundering and terrorist financing.

The said reporting obligations apply to CIFs taking into account the nature, scale and complexity of their respective businesses, and the nature and range of investment services and activities undertaken in the course of their business.

Shareholders Possessing Qualifying Holdings

Section 33(7) of the Law stipulates the obligation of CIFs to notify the Commission at least by January 31st of each year, the names of the shareholders possessing qualifying holdings during the previous calendar year as well as its associates and the sizes of such direct or indirect held holdings. The notification must be submitted along with the group structure, which shall include all the affiliated entities.

Declaration of Tied Agent

Pursuant to section 40 (15) of the Law, a CIF must send a notification to the Commission, until the 31st of January of each calendar year, a table including the details of its tied agents. Such notification should be submitted by a CIF every time that it appoints or dismisses a tied agent, as well as when it becomes aware of changes in the specifics and/or status of its tied agent. Tied agents are also obliged to make available to the Commission their books and records, and every other document or information as this might be requested.

Audited Financial Statements

Furthermore, with reference to the financial status, section 114 of the Law imposes the obligation for the submission to the Commission within four months from the end of the financial year, of the financial accounts that provide a true and fair picture of the CIF’s financial status and these shall be based in accordance with the relevant accounting standards and rules. The said financial accounts must be audited by a qualified auditor and be accompanied by a signed copy of the suitability report. The Directive DI144-2007-01, extends CIFs’ obligations by imposing requirements upon the CIFs to implement and maintain internal accounting policies and procedures, which enable them to deliver in a timely manner to the Commission their financial reports, upon a relevant request.

The Law also imposes the duties on the CIFs’ auditors to report promptly to the Commission any fact or decision in relation to the said CIF of which they became aware during the processing of the information for the preparation of the reports. This duty also extends to undertakings having close links with the CIFs.

Suitability Report

Within four months from the end of each financial year, the auditors must submit to the Commission the suitability report, which describes the measures taken by the CIF with regards to the safeguarding of the client’s ownership rights and prevention of the use of client’s instruments on own account without the prior consent of the client. In accordance with subsection 2 of section 18, the CIFs required to:

  • make adequate arrangements so as to safeguard clients’ ownership rights, especially in the event of the CIF’s insolvency, and to prevent the use of a client’s instruments on own account except with the client’s express consent;
  • make adequate arrangements to safeguard the clients’ rights and, except in the case of credit institutions, prevent the use of client funds for its own account.

Submission of the capital adequacy and large exposures reports

By virtue of the provisions of section 72 and 73 of the Law, a CIF must make publicly available and submit to the Commission the information relating to its capital adequacy and exposures.

As a result of the implementation of EU Directive 2013/36/EU and the Regulation 575/2013 into National Law, the Commission has issued the Directive DI2014-144-15 and DI2014-2014-14, which have repealed the Directives DI144-2007-05 and 144-2007-06 for capital adequacy and large exposure respectively.

The implementation of the above regulations has increased the prudential requirements of CIFs by, inter alia, imposing enhanced reporting obligations related to capital adequacy and exposure of CIFs. The Commission, in order to ensure that CIFs are transparent, financially healthy and are not exposed to capital risk beyond the regulatory threshold, has issued the following forms:

  • Form 144-14-06.1 Calculation of own funds and capital adequacy ratio
  • Form 144-14-07 Leverage
  • Form 144-14-08.1 Large exposures to institutions and non-institutions
  • Form 144-14-08.2 Exposures to Directors
  • Form 144-14-08.3 Exposures to Shareholders
  • Form 144-14-09 Geographical breakdown of exposures

All the aforementioned forms must be submitted to the Commission Quarterly via the TRS system, along with the following:

  • Trial Balance, 
  • Balance Sheet and
  • Profit and Loss a/c.

For the successful filling and completion of the Forms, CIFs shall be taking, into consideration, including but not limited to, their minimum own funds requirements, eligible capital, the transitional provisions contained in the Capital Requirement Directive IV and the geographical distribution of exposures. It must be noted that the form 144-14-09 concerning the geographical breakdown of exposures needs to be submitted to the Commission regardless of whether the CIF is exceeding the applicable threshold of exposure as this is defined in the Directive DI144-2014-15.

Risk Management Report

The Risk Management Report along with the minutes of the Board of Directors meeting is required to be submitted annually, within twenty days from the date of the relevant meeting of the Board of Directors. A CIF’s risk management report contains the processes, supporting measures and sound proactive practices for limiting risk exposure and ensuring adherence to the regulatory provisions.

The risk management function ensures that all risks are identified, calculated and reported. CIFs must ensure that the risk management function is actively involved in elaborating the CIF’s risk strategy and in all material risk management decisions and that it can deliver a complete view of the whole range of risks of the institution.

The risk management report, among others, must contain the following:

  • the mandates of the risk management function,
  • evaluation of risk and reporting of issues and decisions taken by the risk management function,
  • identifying, measuring, assessing, responding to, and reporting on all the risks resulting from the CIF’s activities,
  • the integrity of the risk management information systems, including the accuracy, reliability and completeness of the data used, and;
  • the approval and maintenance of risk models including verification of the consistency, timeliness, independence and reliability of data sources used in such models.

Country-by-Country Reporting

By virtue of the Directive DI2014-144-14, CIFs are required to disclose to the Commission on an annual basis, and consolidated basis, information such as: (a) name(s), nature of activities and geographical location (b) turnover; (c) number of employees on a full time equivalent basis; (d) profit or loss before tax; (e) tax on profit or loss; (f) public subsidies received. Such disclosures shall be designated by the Member State(s) and the third countries in which the CIF has an establishment.

External Auditors Verification Report

In accordance with section 18(2) of the Law, a CIF is obligated to take every possible measure to protect its clients’ funds. To this end, the external auditors are directly obligated to submit to CySEC, within five months from the end of each financial year, a report on the adequacy of arrangements established by the CIF, in relation to the clients’ funds and financial instruments.

The Report should be submitted to the Commission within four months from the beginning of each calendar year and must be accompanied by the following:

  • Reconciliation of clients’ funds between CIFs’ internal records and accounts and those of any third parties by whom those funds are held, as at March.
  • Analysis of client funds balances per credit institution, payment service provider or other authorised third person.

Compliance Function Report

Compliance function means the internal function of an Investment Firm for identifying, assessing, advising, monitoring and reporting on the investment firm’s regulatory compliance risks.

The compliance function report must contain a description of the implementation and effectiveness of the overall control environment for investment services and activities, ancillary services and other business, relevant changes and developments in regulatory requirements over the period covered by the report, the measures to be taken to ensure compliance with the regulatory changes, a summary of the risks that have been identified during on-site inspections or desk-based reviews performed by the compliance function as well as remedial approaches.

The Compliance Report must be prepared on an annual basis and must be submitted to the Commission within the period of twenty days from the meeting of the board of directors of the CIF, in which the report has been discussed, along with the relevant minutes of the meeting.

Annual Money Laundering (“AML”) Compliance Officer Report

The AML compliance officer of the CIF, is obliged to prepare an annual report (‘the AML Annual Report’) for assessing the Regulated Entity’s level of compliance with its obligations laid down in the Prevention And Suppression Of Money Laundering And Terrorist Financing Law 188(I)/2007 and the relevant directive. The AML Annual Report is prepared and submitted for approval to the board of directors, within two months from the end of each calendar year (the latest by the end of February). Following the approval by the board of directors, the report is submitted to the Commission along with the minutes of the board of directors within twenty days from the date of the relevant meeting.

The report should be prepared separately and not be part of any other report that the CIF has a requirement to prepare. The report shall at least cover the subjects provided in Paragraph 10 (4) of the directive DI144-2007-08 of 2012 of the Commission for the Prevention of Money Laundering and Terrorist Financing and subsequent amendments. 
In case where, the Annual Report does not contain, at least, the issues mentioned in paragraph 10(4) as above, it cannot be considered that it is in compliance with the said paragraph and subsequently with the relevant directive. In the event of such failure, the board of directors and the Compliance Officer are subject to administrative sanctions as these are provided by the relevant legislation.

PILLAR III disclosures

In accordance with Regulation (EU) No. 575/2013 (the “Capital Requirements Regulation”, “CRR”), which was introduced in late 2014, CIFs are obliged to disclose information relating to its risk management, capital structure, capital adequacy, its risk exposures as well as the most key characteristics of the CIFs corporate governance including its remuneration system. The scope of this report is to promote market discipline and to improve transparency in the industry.
Article 433 of CRR provides that these disclosures shall be published on an annual basis in conjunction with the date of publication of the financial statements by the end of April each year.

The content of this article intends to provide a general guide to the subject matter.

Specialist advice should be sought on each particular case.

For any further information, please contact Mr. Lambros Soteriou at lambros@kyprianou.com.cy or Mr. Christos Tourvas at tourvas@kyprianou.com.cy

Author

Find the right Legal Expert for your business

The premier guide to leading legal professionals throughout the world

Specialism
Country
Practice Area
LAWYERS RECOGNIZED
0
EVALUATIONS OF LAWYERS BY THEIR PEERS
0 m+
PRACTICE AREAS
0
COUNTRIES AROUND THE WORLD
0

Join

who are already getting the benefits
0
Sign up for the latest legal briefings and news within Global Law Experts’ community, as well as a whole host of features, editorial and conference updates direct to your email inbox. Naturally you can unsubscribe at any time.

Online Casino Reviews

  • Freeroll Poker Tournaments For Real Money
  • Australian Online Casino Real Money
  • Best Slot App To Win Real Money
  • Online Casino Real Money Australia
  • Best Paying Online Pokies
  • Wizard Of Oz Online Slots
  • All Slots Casino Mobile
  • Best Online Poker App Real Money
  • Best Online Casino To Play Roulette
  • Is Online Casino Legal
  • Online Casino That Accepts Paypal
  • Play Roulette For Real Money
  • Slot Apps To Win Real Money
  • Real Money Slots Online Usa
  • Safe Online Casino
  • Wizard Of Oz Slots
  • Real Online Pokies Nz
  • Biggest Online Casino In The World
  • Online Casino Pay With Paypal
  • Online Casino That Accept Paypal
  • Online Casino Canada Real Money
  • 3 Card Poker Online Real Money
  • Online Slots Real Money Canada
  • Best Online Poker Sites For Real Money
  • Real Money Poker App Android Usa
  • How To Make Money From Online Casino Bonuses
  • Real Money Poker App Iphone
  • How To Play Blackjack Online For Real Money
  • Best Slots To Play
  • Top 10 Online Pokies
  • Best Poker Apps Real Money
  • Online Casino Legal
  • Best Payout Online Casino Uk
  • Win Money Online Slots
  • Online Poker Nj Real Money
  • How To Win Online Slots
  • Casino Gaming License
  • Play Real Pokies Online
  • Blackjack Sites For Real Money
  • Real Money Casino Games For Android
  • Best New Online Slots
  • Flaming 777 Slots Games
  • Online Blackjack With Live Dealers
  • How To Play Online Slots
  • Facebook Casino Games Real Money
  • Online Casino With No Minimum Deposit
  • How To Beat Online Slots
  • Online Casino License
  • The Big Payback Slots
  • Royal Vegas Online Casino Withdrawal
  • Online Casino Minimum Deposit 5
  • Online Pokies Real Money Australia
  • Las Vegas Usa Online Casino
  • Real Money Poker App Android
  • Wheel Of Fortune Slots
  • Game Of Thrones Slots
  • Online Poker Real Money Usa Legal
  • Best Online Casino European Roulette
  • Blackjack Online Real Money Paypal
  • Online Video Poker Real Money Usa
  • How To Create An Online Casino
  • Lucky Nugget Online Casino Mobile
  • How To Withdraw Money From Online Casino
  • Platinum Play Online Casino Download
  • Online Casino For Usa Players
  • Best Online Casino Usa Real Money
  • Online Roulette Real Money Usa
  • Best Real Money Poker Sites
  • Android Slots Real Money
  • How To Start An Online Casino Business
  • How To Start An Online Casino
  • How To Start An Online Gambling Site
  • Best Online Casino For Blackjack
  • Play Baccarat Online For Money
  • Online Pokies New Zealand
  • Best Slots To Play At Golden Nugget
  • Slots Of Vegas Online Casino
  • Best Online Pokies Site
  • How To Beat Online Roulette
  • New Zealand Online Pokies
  • Online Poker Mobile Real Money
  • Which Online Slots Payout The Most
  • Is Online Casino Legal In India
  • Online Casino Software For Sale
  • Best Online Casino For Craps
  • Hard Rock Casino Slots
  • Win Real Money Online Pokies
  • Online Casino With Highest Payout Percentage
  • Poker Apps With Real Money
  • Online Roulette Real Money Review
  • Full Tilt Poker Real Money
  • Online Casino 5 Dollar Minimum Deposit
  • Online Roulette With Real Money
  • Best Online Roulette For Real Money
  • I Migliori Casino Online Italiani
  • Best Payout Online Slots
  • How To Play Baccarat Online
  • Play Casino Card Game Online
  • Play Blackjack Online For Real Money
  • Best Paying Online Slots
  • Casino License Cost
  • Online Poker Real Money California
  • Safe Online Casino Australia
  • Online Roulette Australia Real Money
  • Online Poker Real Money Texas
  • Online Roulette Real Money Paypal
  • Online Slots Australia Real Money
  • Golden Nugget Online Casino Review
  • Casino Games To Win Real Money
  • Online Pokies Australia Real Money
  • Online Gambling Blackjack Real Money
  • Win Real Money Playing Slots
  • How To Win Roulette Online
  • Aristocrat Pokies Online Real Money
  • Hollywood Casino Online Slots
  • Play Online Keno For Real Money
  • What's The Best Online Casino
  • Triple Double Diamond Slots
  • Play Roulette Online With Real Money
  • Roulette Online For Real Money
  • Play Roulette Online Real Money
  • Best Online Pokies Real Money
  • Big Red Pokies Online
  • How To Win At Online Blackjack
  • What Is The Best Online Roulette Site
  • Real Money Online Pokies
  • Spin To Win Slots
  • Ruby Slots Online Casino
  • Wheel Of Fortune Online Casino
  • Spin Palace Flash Casino Online
  • Online Poker Real Money App
  • Online Casino With Paypal Deposit
  • How To Win At Online Roulette
  • Can You Win Real Money On Slot Apps
  • Is Ignition Casino Safe
  • Online Casino Blackjack Real Money
  • Online Casino Win Real Money Usa
  • How To Make Money Online Casino
  • Online Casino Real Money Reviews
  • Slot Games To Win Real Money
  • Jackpot City Online Casino Download
  • Online Pokies Real Money
  • Casino War Online Real Money
  • Online Casino No Minimum Deposit
  • Play Wheel Of Fortune Slots Online
  • Best Online Casino Game To Win Money
  • Online Casino Without Wagering Requirements
  • Online Slots For Real Money Usa
  • Legal Online Casino Australia
  • How Do Online Slots Work
  • Best Online Casino For Us Players
  • Online Play Casino Roulette Game
  • Online Blackjack Real Money Australia
  • Real Casino Games Real Money Online
  • Online Slot Machines Real Money Paypal
  • The Best Online Casino For Roulette
  • What Online Casino Pays Out The Most
  • Start Your Own Online Casino
  • Legal Online Casino
  • Online Live Roulette Casino Game
  • Playing Blackjack Online For Real Money
  • Online Penny Slots Real Money
  • Best Online Blackjack For Money
  • How To Win Online Roulette
  • Real Money Poker Sites Usa
  • Best Time To Play Slots
  • Online Keno For Real Money
  • Best Payout Online Slots Uk
  • Online Slots Real Money Reviews
  • Best Online Pokies Nz
  • What States Allow Online Gambling
  • Best Real Money Poker App
  • Online Slots To Win Real Money
  • Real Money Slots App Iphone
  • Jackpot City Flash Casino Online
  • Ignition Casino Legit
  • All Star Slots Casino
  • How To Play Online Casino
  • Real Time Gaming Slots
  • Online Video Poker Real Money
  • How To Play Roulette Online For Money
  • How To Win On Online Slots
  • Age Of Gods Slots
  • Online Real Casino Money Games
  • Best Online Slots To Play
  • Online Poker California Real Money
  • Is Jackpot City Casino Legit
  • How To Win At Online Slots
  • Play Poker For Real Money
  • Safe Online Pokies Australia
  • Best Way To Play Slots
  • How To Play Casino Online
  • Play Online Roulette For Money
  • Online Casino Australia Real Money
  • Which States Allow Online Gambling
  • Play Keno Online Real Money
  • How To Win Online Blackjack
  • Online Blackjack With Real Dealers
  • How To Open Online Casino
  • What Are The Best Online Slots To Play
  • Big Win Casino Slots
  • Spin Palace Online Casino Australia
  • Best Slots To Win On
  • Casino Slots Win Real Money
  • Slots Magic Online Casino
  • Blackjack Online For Real Money
  • Slot Machine App Win Real Money
  • Online Casino Not Paying Out
  • Slots That Pay Out Real Money
  • Online Pokies Australia Reviews
  • Online Casino Minimum Deposit 1
  • Jackpot City Online Casino Review
  • Live Dealer Baccarat Online Casino
  • Online Casino Apps For Android
  • Online Casino Paypal Deposit Australia
  • Online Casino With Live Dealer
  • How To Play Blackjack Online
  • Slots To Win Real Money
  • Wheel Of Fortune Online Slots
  • Play Quick Hit Slots Online
  • Can You Count Cards In Online Blackjack
  • Palace Of Chance Online Casino
  • How To Play Roulette Online
  • Good Slots To Play
  • Which Online Casino Pays Out The Most
  • Heart Of Vegas Casino Slots
  • Best Online Casino For Canadians
  • Australian Online Pokies Real Money
  • Mohegan Sun Online Casino Nj
  • Online Casino Live Games Best Uk
  • Best Online Casino Australia Reviews
  • Play Pokies Online Real Money
  • Best Online Casino For Usa Players
  • How To Win Online Casino
  • Play Blackjack For Real Money
  • Best Slots On Bovada
  • Online Keno Real Money Usa
  • Online Slots Real Money Paypal
  • Best Poker Sites For Real Money
  • Safe Casino Sites
  • The Best Online Slots
  • Play Keno For Real Money
  • Real Online Pokies Australia
  • Queen Of The Nile Slots
  • Mummys Gold Casino Online Casino
  • Play Keno Online For Real Money
  • Best Poker Websites Real Money
  • Lucky Nugget Online Casino Download
  • Best Online Casino For Roulette
  • Play Roulette For Money Online
  • Video Slots Mobile Casino
  • Best Time To Play Online Slots
  • Best Real Money Online Poker
  • Play Blackjack Online With Friends
  • Play Baccarat Online For Real Money
  • Is Silver Oak Casino Legit
  • Big Fish Casino Real Money
  • Can You Win Real Money On Caesars Slots
  • Game Of Thrones Slots Casino
  • Best Online Slots Payout Percentage
  • Play Online Pokies For Real Money
  • Play Pokies Online Australia
  • High 5 Casino Real Slots
  • The Best Online Pokies
  • Online Pokies That Accept Paypal
  • Heart Of Vegas Slots
  • How To Play Online Roulette
  • Best Poker App Real Money
  • Best Online Casino Fast Payout
  • Best Slots At Wind Creek Casino
  • Online Casino 10 Minimum Deposit
  • Play Roulette Online For Money
  • Us Real Money Poker Sites
  • How To Win In Online Casino
  • Best Online Pokies Australia Review
  • Where To Play Roulette Online For Real Money
  • How To Beat Online Casino Slot Machines
  • Highest Payout Online Slots
  • Best Paying Online Casino Slots
  • Golden Tiger Online Casino Review
  • Online Casino With Live Dealers
  • Play Roulette Online For Real Money
  • Best Slots To Play At Casino
  • Slot Machine Games Win Real Money
  • Most Popular Online Casino Games
  • Casino Slots App Real Money
  • Online Casino Real Money Canada
  • Online Real Money Pokies
  • Online Roulette Game Real Money
  • Online Casino Roulette Real Money
  • Best Place To Play Roulette Online
  • Online Casino Book Of Ra Paypal
  • Online Blackjack With Real Money
  • Play Online Blackjack For Real Money
  • Is There A Slot Machine App For Real Money
  • Royal Vegas Online Casino App
  • Best Casino Slots To Play
  • Most Popular Online Slots
  • Best Way To Win At Slots
  • Slots You Can Win Real Money
  • Play Roulette Online Real Money Usa
  • Online Casino Real Money Paypal
  • Online Casino Australia Legal
  • Treasures Of Troy Slots
  • Online Casino For Us Players
  • Where Can I Play Blackjack Online For Real Money
  • Online Casino Paypal Book Of Ra
  • Online Roulette For Real Money
  • Best Online Blackjack Real Money
  • Poker App For Real Money
  • Jackpot Magic Slots Facebook
  • Best Online Casino Real Money Usa
  • Best Online Casino New Zealand
  • The Four Kings Casino And Slots
  • How To Play Slots Online
  • Best Online Pokies Australia
  • Usa Online Slots Real Money
  • Real Money Casino Android App
  • Online Slot Machines That Pay Real Money
  • Online Pokies Real Money Nz
  • Online Pokies Real Money App
  • Play Igt Slots Online
  • Best Casino Slots To Win Money
  • Online Casino Business For Sale
  • Play N Go Slots
  • Poker Apps For Real Money
  • Lucky Slots Real Money
  • All Slots Online Casino
  • Best Online Pokies Real Money Australia
  • Online Pokies Win Real Money
  • Best Online Casinos For Roulette
  • Pay Slots For Real Money
  • Best Online Poker Real Money
  • Slots App Win Real Money
  • Play Online Roulette For Real Money
  • Is Ignition Casino Legit
  • Wheel Of Fortune Slots Online
  • Lotsa Slots Real Money
  • Video Poker Online Real Money
  • Online Slots Usa Real Money
  • Play Blackjack Online Real Money
  • Jackpot City Online Pokies
  • Video Slots Online Casino
  • Is 888 Casino Legit
  • Online Slot Games That Pay Real Money
  • Prepaid Visa Card Online Casino
  • How To Stop Online Gambling
  • Best Slots To Play Online
  • Online Blackjack For Real Money
  • Slot Apps For Real Money
  • Mobile Slots Win Real Money
  • Newsletter Sign Up

    About Us

    Global Law Experts is dedicated to providing exceptional legal services to clients around the world. With a vast network of highly skilled and experienced lawyers, we are committed to delivering innovative and tailored solutions to meet the diverse needs of our clients in various jurisdictions.

    Social Posts

    See More:

    Contact Us

    Stay Informed

    Join Mailing List

    GLE