Cyprus Securities and Exchange Commission – C181

by:MICHAEL KYPRIANOU & CO. LLC

On 2nd February 2017 the Cyprus Securities and Exchange Commission (“CySEC”) issued the long awaited Circular No. C181.

According to Circular C181, CySEC imposes stricter guidelines as to the information which can be provided by Cyprus Investment Firms (“CIFs”) to clients and as to who can provide this information.

It is very important to note that according to the provisions of the Circular, CIFs may not outsource these activities to third parties / service providers and should be done internally or by either the CIF’s branch situated in the Republic or in another EU Member State. In addition, stricter measures are being imposed, such as the prohibition of the use of alias names in its entirety. CIFs remain responsible for the services provided by any third party / service provider and the Company’s compliance department is under the obligation to have in place the relevant monitoring procedures and effective controls to ensure the provisions of the Law and Directives are fully complied with.

CIFs must, by 2nd May 2017, submit the relevant confirmation to CYSEC confirming that they have taken the necessary steps as provided for by the provisions of the Circular.

The full text of the Circular can be accessed here:

http://cysec.gov.cy/CMSPages/GetFile.aspx?guid=ea02458e-f564-4ec1-ab4d-79a32fb76705

This is to serve as general informative material. If you seek specific advice please contact Ms Ioanna Solomou at ioanna@kyprianou.com.cy