CySEC extends certain reporting deadlines for investment firms
The Cyprus Securities and Exchange Commission (CySEC) today issued a circular concerning Cyprus investment firms (CIFs), including Forex and CFD brokers.
The regulator informs the CIFs that due to the ongoing developments related to the Coronavirus outbreak (COVID-19) and in an effort to ensure operational continuity, the deadlines for a submission to CySEC of the following reports/notification are extended:
- Annual Compliance Function Report
- Annual Risk Management Report
- Annual Internal Audit Report
- Annual Audited Financial Statements
- Annual Auditors’ Suitability Report
CySEC extends by two months the deadlines for the submission of the above-listed reports/notifications that would otherwise have been due April 30, 2021.
As per article 433 of the Regulation EU No. 575/2013 (‘the CRR’), “Annual disclosures shall be published in conjunction with the date of publication of the financial statements”. CySEC notes that will implement a delay of two months towards CIFs in respect to their compliance with the above-mentioned obligation for the year ending on December 31, 2020.
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.
The regulator notes that CIFs which anticipate that the publication of their Pillar III disclosures will be delayed, will have to inform the market participants for that delay, the reasons of delay and, to the extent possible, their estimated publication date.
However, CySEC says that in cases where a report/notification can be submitted within the ordinary deadlines without compromising the quality and reliability of the information submitted, a timely submission is encouraged.