The Cyprus Securities and Exchange Commission (CySEC) is planning to conduct on-site visits and/or desk based reviews on a sample of Cyprus investment firms (CIFs) that provide investment services to retail clients, during the second half of 2023.

This action will allow CySEC to assess how the CIFs apply the MiFID II requirements on marketing communications and it will also enhance the protection of investors in line with ESMA’s objectives.

The European Securities and Markets Authority (ESMA) has launched the Common Supervisory Action (CSA) 2023 with national competent authorities (NCAs) on the application of MiFID II disclosure rules with regard to marketing communications across the European Union (EU).

The scope of the CSA 2023 is set as follows:

• to review whether marketing communications (including advertisements) are fair, clear and non-misleading and how firms select the target audience for the marketing communications, especially in the case of riskier and more complex investment products.
• to consider marketing and advertising by firms through distribution channels including apps, websites, social media and collaborations with affiliates such as influencers.

Finally, the 2023 CSA will also be an opportunity collect information about possible ‘greenwashing practices’ observed in marketing communications and advertisements.