Updates regarding the new prudential framework for Investment Firms
Updates regarding the new prudential framework for Investment Firms (IFD/IFR) & CySEC’s Data collection
The Cyprus Securities and Exchange Commission ("CySEC") wishes with Circular C442 to inform the Cyprus Investment Firms (‘CIFs’) about the following:
A. Updates on the new prudential framework for Investment Firms
Following the publication of Circulars C355 and C426 by the Cyprus Securities and Exchange Commission, along with the EBA's final draft Implementing Technical Standards (ITS), the final set of reporting templates can be found here. CySEC is currently in the process of enhancing them and intends to publish the new templates that the CIFs will use for the calculation of their prudential requirements based on IFR/IFD, by early June 2021.
CySEC would like to emphasise that all CIFs should start to familiarise themselves with the final set of reporting templates issued by the EBA as CySEC’s enhancements will not affect the information that needs to be reported.
B. Reporting under IFR/IDR
REPORTING DATES CIFs shall submit their reporting requirements to CySEC on the following reference dates:
Quarterly reporting (for Class 2 CIFs): 31 March, 30 June, 30 September and 31 December;
Annual reporting (for Class 3 CIFs): 31 December.
The first official reporting reference date for Class 2 CIFs, under IFR/IFD, shall be for 30th September 2021, due to be submitted to CySEC by 11th November 2021. The first official reporting reference date for Class 3 CIFs, under IFR/IFD, shall be for 31st December 2021, due to be submitted to CySEC on 11th February 2022.
CIFs that are under consolidated supervision by CySEC should submit both solo and consolidated information, within the deadlines mentioned above and using the same set of reporting templates.
Since the new prudential framework comes into force on 26th June 2021, no COREP submission shall be made to CySEC based on the existing framework of CRR and CRDIV for the reporting period ending 30th June 2021.
Thus, the last period of COREP submission to CySEC under the CRR and CRDIV shall be for the period ended 31st March 2021 (due for submission to CySEC on 12 May 2021).
CySEC’s DATA COLLECTION EXERCISE
Following the above, CySEC launches a Data Collection Exercise addressed to ALL CIFs, the purpose of which is to determine the Class that each CIF will be categorised at, as from 26th June 2021, when the IFR/IFD comes into force.
Thus, all CIFs are expected to complete the Data Collection Template (‘the Template’) which can be found below. Instructions on how to complete the Template can be found on tab ‘Summary’ and also on the Notes mentioned on tab ‘Data collection’.
Note that, for the purposes of this exercise ONLY, where daily values are not available for the calculation of K-Factors, then a CIF may use weekly or monthly figures.
Submission: The CIFs should fill in the Template and submit it to CySEC via email only, at the electronic address firstname.lastname@example.org, quoting as email subject: ‘CIF TRS Code _ IFR Classification’.
Name of the file: The excel file Template that will be submitted to CySEC should also have the following naming convention: ‘CIF TRS Code_IFR Classification’
Date of the submission: The Template should be submitted to CYSEC the latest by 31st May 2021.
If you have questions do not hesitate to contact us.
Written by Angeliki Georgiou, Independent Legal Consultant