On 21 April 2021, the Cyprus Securities and Exchange Commission (CySEC) issued Circular C442 in order to update all Cypriot Investments Firms (CIFs) about the upcoming prudential regulatory framework (IFR/IFD) and inform them about the data collection exercise which is launched, aiming to determine the class that each CIF will be categorized from 26 June 2021 onwards.
Timeline of the implementation
The graph below describes the timeline of the implementation of the new prudential regulatory framework to CIFs from the date of publication of the new regulation and directive until the implementation date:
In light of the above, CySEC urges all CIFs to familiarise themselves with the new reporting templates published by EBA on 05 March 2021 in order to be ready for the first submission under the new prudential regulatory framework (IFR/IFD).
Reporting Obligation Deadlines
The circular also specifies the reporting frequencies and deadlines with respect to the capital requirements for each class. Specifically, and as regards the reporting requirements for class 2 and 3 the following submission deadlines and frequency will apply:
| Investment Firm Type | Frequency | Reference Dates | Deadlines Dates |
|---|---|---|---|
| Class 2 | Quarterly |
31 March 30 June 30 September 31 December (Audited and Unaudited) |
12 May 11 August 11 November 11 February (unaudited) 31 May (audited) |
| Class 3 | Annually | 31 December |
11 February (unaudited) 31 May (audited) |
All CIFs which are consolidated supervised by CySEC should submit both solo and consolidated information within the deadlines mentioned above.Class 2 first submission date is for the reference date 30 September 2021 due by 11 November 2021
Class 3 first submission date is for the reference date 31 December 2021 due by 11 February 2022.
Moreover, CySEC informed all CIFs that since the new framework will be implemented on 26 June 2021 and as such CIFs will not be required to submit COREP forms for the period up to 30 June 2021 based on the current framework. In this respect, the last reporting reference date under the current prudential framework will be for the period up to 31 March 2021 (due to CySEC by 12 May 2021).
Furthermore, CySEC will announce a testing phase for all CIFs for the respective period (due by early September 2021) based on the new prudential regulatory framework at a later stage.
CySEC’s Data Collection Exercise
CySEC launches a Data Collection Exercise addressed to all CIFs in order to determine the classification that each CIF will be categorized from the implementation date onwards. In this respect, all CIFs are requested to complete and submit the Data Collection Template to CySEC via email (prudential@cysec.gov.cy) with subject ‘CIF TRS Code_IFR Classification’. The data needed to be disclosed in the said template are mainly related with the calculation of the new K-Factors methodology. The naming standard of the form should be ‘CIF TRS Code_IFR Classification’.
MAP RMS can assist you with the completion and submission of the Data Collection Template as provided by the C442 and advise you with any proactive steps to be taken to ensure compliance with the new capital requirements by 26 June 2021. For more information on our services, please visit our website at www.maprms.com or contact our team at +357 2287 7744/ +357 2535 1335 or via email at info@maprms.com