The 5 Areas of Regulatory Compliance
More than 230 investment firms are regulated by the Cyprus Securities and Exchange Commission (CySEC) as of October 2019. As discussed, all firms offering and performing these investment and ancillary services must be authorised by a National Competent Authority (NCA) of the European Union member state. In the case of Cyprus the NCA is CySEC, in the case of Germany it is BaFin and so on.
All these Cyprus Investment Firms (CIF) are authorised to offer a varying combination of investment services that suit their business model and objectives. Most of the companies are online brokerages for Contracts of Difference (CFD), while others are Asset Managers and Wealth Managers, with a few also or solely performing Portfolio Management and Investment Advisory.
A common challenge all these European investment firms face is adapting to upcoming regulations while enforcing the demands of existing regulatory requirements. Managing the compliance costs is of paramount importance.
Our approach needs to be proactive rather than reactive, to save time and effort. Two resources of extreme importance for profitability.
In this article, we list the 5 main areas out of which most compliance requirements (and costs) are coming from and, indicate how SALVUS can be of value in identifying interdependencies of and synergies from all regulations and enhancing business through efficient practises and policies.
The 5 areas of regulatory compliance are:
1. Markets in Financial Instruments Directive (MiFID)
2. European Market Infrastructure Regulation (EMIR)
3. Capital Requirements Directive IV (CRD IV)
4. Anti-Money Laundering (AML) and Terrorism Financing
5. OECD Common Reporting Standard (CRS)
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