CySEC Extends Submission Deadlines of Certain Reports for CIFs

The Cyprus Securities and Exchange Commission (CySEC​) has extended the deadlines for a submission of certain reports/notifications for Cyprus investment firms (CIFs), including forex and CFDs brokers, due to the ongoing developments related to the COVID-19 and in an effort to ensure operational continuity.

In particular, CySEC will comprehend a delay of two months to submit the below listed reports/notifications that would otherwise have been due April 30, 2021.

· Annual Compliance Function Report

· Annual Risk Management Report

· Annual Internal Audit Report

· Annual Audited Financial Statements

· Annual Auditors' Suitability Report

Additionally, the Cypriot watchdog​ will also comprehend a delay of one month to submit COREP forms based on the audited financial statements that is due on May, 2021, and disclosures made in Form 144-14-11 that is due for submission on June 30, 2021.

As per article 433 of the Regulation EU No. 575/2013, annual disclosures shall be published in conjunction with the date of publication of the financial statements.

It is noted that CySEC will also comprehend a delay of two months towards CIFs in respect to their compliance with the abovementioned obligation for the year ending on 31st December 2020.

Furthermore, as per paragraph 32(1) of CySEC Directive 144-2014-14, the information referred to in Part Eight of Regulation (EU) No 575/2013, shall be audited in accordance with the Auditors and Statutory Audits of Annual and Consolidated Accounts Law of 2009 and shall be published, where possible, as an annex to the annual financial statements or, where applicable, to the consolidated financial statements of the CIF concerned or on the CIF's website. The CIF will be responsible to submit its external auditors'verification report to the Commission the latest within five months from the end of each financial year.

However, the regulator will not prioritise its supervisory actions towards CIFs in respect to their compliance with the abovementioned obligation for the year ending on 31st December 2020, as of 1st June 2021 – 31st August 2021.

CySEC expects that the affected CIFs will assess the need for additional disclosures in their Pillar III disclosures that may be necessary in order to properly convey the risk profile of the CIF in the context of the COVID 19 outbreak. Firms which anticipate that the publication of their Pillar III disclosures will be delayed, need to inform the market participants for that delay, the reasons of delay and, to the extent possible, their estimated publication date.

The watchdog also encourages investment firms which have the capabilities to do so to submit reports/notifications within the ordinary deadlines without compromising the quality and reliability of the information submitted.

As Fazzaco reported earlier, CySEC has just completed a series of review and assessment regarding regulated entities. As a result, the Cypriot regulator has warned related firms of the common and recurring weaknesses and deficiencies in relation to AML​ and other compliance requirements​, to which firms should apply corrective measures immediately.