CIF, Capital adequacy and consolidated supervision
The Cyprus Securities and Exchange Commission (CySEC) has requested, for the first time, that Cyprus Investment Firms (CIF) submit in writing whether they fall under consolidated supervision or not, in terms of the Capital Adequacy Ratio (CAR). Therefore, the Executive Directors of the Cypriot Investment Firms and the external auditors of the firms must submit the relevant declaration to CySEC, by the end of September 2019.
Going further, CySEC asked firms to submit granular details of the group structure, such as the holding of the CIF, the total assets and the off balance sheet items, of;
– the CIF’s subsidiaries and associates,
– the CIF’s parent companies,
– the holdings of the CIF’s direct parent companies,
– the CIF’s indirect EU and non-EU parent companies,
and a declaration as to whether there is a consolidated supervision by another competent authority.
The Capital Requirements Regulation (CRR) №575/2013 and the CySEC Directive 144–2014–14, specify the details required by the consolidated entities.
In this commentary, we will simplify the regulation and provide guidance for the firms to decide whether they fall under a consolidated supervision by CySEC or by another competent authority.
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