CySec informs about main changes affecting the authorisation requirements for investment firms 

The Cyprus Securities and Exchange Commission (CySec) has issued an announcement to inform any interested parties that the Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (‘MiFID II’) and Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (‘MiFIR’) will enter into application on 3 January 2018.

In particular, MiFID II must be transposed into national law in Cyprus by 3 July 2017 and will be applicable as of 3 January 2018, whereas MiFIR will be directly applicable on 3 January 2018. Please note that the national law which transposes MiFID II is currently before the House of Representatives.

The current Announcement aims to highlight the main changes introduced by MiFID II, MiFIR, and the relevant delegated and implementing regulations, which affect the authorisation requirements for investment firms, including Cyprus Investment Firms (‘CIFs’). For a brief overview of all obligations set out in MiFID II and MiFIR please refer to the Practical Guide published by CySecin October 2014.

The main changes are summarized – non-exhaustively – in the Appendix below.

CySec would also like to emphasize that all market participants that are affected by the changes introduced by MiFID II and MiFIR must start preparing for the implementation of the new legislative framework and take all steps to comply with it as of 3 January 2018. Such market participants include, but are not limited to,

i. CIFs which will need to extend their authorisation to cover new investment activities and/or financial instruments introduced by MiFID II,

ii. entities that will no longer be exempt from the scope of this legislation,

iii. persons undertaking high frequency algorithmic trading¹ that will now fall within the scope of MiFID II, and

iv. currently unauthorised businesses/entities that will have to be authorised under MiFIDII.

1As defined in Article 4 (1) (40) of MiFID II.

Read the full announcement as published by CySec HERE

Source: CySec – Announcement MiFIDII Main Changes for Authorisations

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