The Upgraded Legal Framework of the Investor Compensation Fund
After a year of consultations, CySEC issued on the 13th of March 2019 the reformed legal framework governing the operation of the Investor Compensation Fund(ICF). The new framework is detailed in the new Directive DI87–07, Directive DI144–2007–15 and the PS-02–2019 policy statement.
The ultimate purpose of the ICF is to secure the claims of the clients of entities regulated by CySEC in the event of an adverse scenario and without disturbing the market’s stability. CIFs, AIFMs and UCITs management companies offering investment services and ancillary services are obliged to participate in the ICF.
In this article, we analyze the changes in the requirements, the costs and the additional regulation stemming from the updated ICF legal framework.
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