The Cyprus Securities and Exchange Commission (CySEC) published its recent compliance review for Investment Firms, Investment Fund Managers, and UCITs. We expect the reported deficiencies as well as good practices to form the basis of inspections for the year 2021. This is in line with the aim of CySEC, which is to effectively supervise the regulated firms and ensure robust investors’ protection, safeguard investors’ best interests and support the healthy development of the securities market.

CySEC Supervisory Priorities for 2021

Backing the regulator’s primary goal to support the regulated firms in complying with their regulatory obligations, CySEC has outlined its main priorities and supervisory activities…

The Central Bank of Cyprus (CBC) is in the process of implementing the Resolution of Credit Institutions and Investment Firms Law of 2016 (“Law 22(I)/2016”) which transposes the provisions of the Bank Recovery and Resolution Directive (“BRRD”) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014. The European Commission Implementing Regulation (EU) 2018/1624 of 23 October 2018, (“the CIR”), laid down the EBA technical standards in relation to the procedures, forms, and templates for the provision of information of resolution plans for credit institutions and investment firms.

Our team is in the final stage of…

On the 10th of January 2020, the EU Directive 2018/843 came into force in Europe, and each member state had to transpose the Fifth Anti-Money Laundering (AML) legislation into a national law. On the 18th of February 2021, Cyprus amended its Prevention and Suppression of Money Laundering and Terrorist Financing Law 188(I)/2007 and introduced the new AML Law N.13(I)/202, which brings changes to the national law accordingly. Among other changes, the new AML Law officially and for the first time, introduces Crypto-assets in the Cypriot regulatory system.

In this commentary, SALVUS summarizes the definitions of

  1. Crypto-assets,
  2. Crypto-asset Service Providers,
  3. respective…

The Investor Compensation Fund (ICF) is established with the purpose of securing any potential claims by covered clients against CySEC regulated firms, members of the ICF.

In this commentary, the Compliance specialist team at SALVUS summarizes our answers, to the most frequent questions we receive related to the Investor Compensation Fund (ICF).

  1. Which entities must join and contribute to the ICF?
  2. What are the obligations and contributions of the ICF members?
  3. From which other sources the ICF derives its income for the compensation of the covered clients?
  4. What is the amount of compensation to covered clients and how this is…

The world woke up to a drop in Bitcoin’s latest and most impressive rally to date on the 22nd of January, 2021. The reason was a report of a possible Bitcoin double spend. The technicalities of the proof or disproof make for a very educational read, nonetheless in this article instead of focusing on the details as in the image below, we will take this opportunity to discuss the much much bigger picture of bitcoin, blockchain and other cryptos.

The ‘double-spend’ transactions (Source: BitMEX Research)

Bitcoin and blockchain

For many people, their understanding of Bitcoin and blockchain is a mix of a) Bitcoin is one and the same as…

As the new year approaches, the team at SALVUS has updated the reporting obligations of Investment firms to include the changes and additional reporting introduced by CySEC and new legal frameworks such as the updated legal framework of the Investment Compensation Fund.

The following table presents the yearly schedule for 2021, in chronological order, of all that is to be reported, submitted, or published by Investment Firms (CIFs);
a) to the regulator (CySEC),
b) to the Central Bank of Cyprus (CBC), or
c) on the website of the Cyprus Investment Firm (CIF).

We at SALVUS always strive to keep all…

During the year 2020, two new Anti-Money Laundering (AML) Directives came into force;
1. the fifth AML EU Directive (AMLD5) on the 10th of January 2020, and
2. the sixth AML EU Directive (AMLD6), 3rd of December 2020.
While this new directive, the 6th one, is being introduced, the pandemic is still on, on a global scale and to this day many EU member states have yet to transpose the 5th AML Directive into their national legislation.

The AML Directives aside, 2021 will also introduce major changes in the Capital Adequacy Calculations and the Capital Requirements Regulation through CRR II…

Since January 2018 all European Investment Firms must have been adhering to the regulatory obligations of the 2nd Markets in Financial Instruments Directive (MiFID II) and with the Key Information Documents (KIDs) for Packaged Retail Investment and Insurance-based Products (PRIIPs) regulation.

MiFID II, KIDs and PRIIPs aim is to achieve greater investor protection and to enable retail investors in making informed investment decisions.

In this commentary, the Compliance team at SALVUS explains how these complement each other, and how our team supports firms in ensuring compliance with them.

It all starts with Client assessment

Investment firms are required to conduct a suitability or appropriateness assessment, before…

All Cyprus Investment Firms (CIFs) are expected to employ professionals who hold the appropriate qualifications as per the duties and responsibilities of their role.

All individuals holding such a role within a CIF, or aspiring to hold one, are required to acquire a Professional Competence Certificate that reflects their ability to carry out such activities. These certifications are offered by the Cyprus Securities and Exchange Commission (CySEC) and can be obtained through the following 3 exams:

  • CySEC Basic Financial Services Legal Framework Examination
  • CySEC Advanced Financial Services Legal Framework Examination
  • CySEC Anti-Money Laundering Compliance Officers (AMLCO) Examination

The purpose of…

As more and more companies are coming to Cyprus to obtain a Payment Institution (PI) or an Electronic Money Institution (EMI) license from the Central Bank of Cyprus (CBC), we follow on from earlier articles discussing the advantages, the activities and services of a Cyprus Electronic Money Institution (EMI), and the details of Operating a Cyprus EMI to discuss the key difference between a PI and an EMI.

Salvus Funds

Licensing, Compliance & Internal Audit —#StayAhead — Problem solvers for EMIs | Investment Firms | Investment Funds | M&A, Licensing |

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