CySec informs CIFs for the provision of warnings to retail clients resided in Spain 

The Cyprus Securities and Exchange Commission (CySec) has issued today a Circular to inform the Cyprus Investment Firms (CIFs) about requirements of the Spanish Securities and Exchange Commission (the CNMV) regarding the provision of warnings on complex financial instruments to retail clients resided in Spain.

According the Circular:

Following Circular with no C210, dated May 17, 2017, the Cyprus Securities and Exchange Commission (the CySec) wishes herein to provide the Cyprus Investment Firms (the CIFs) with further clarifications on the provision of warnings on complex financial instruments to retail clients resided in Spain. More specifically:

1. CIFs must include the warnings mentioned in the Circular on the homepage of their website and not relegate any warning to other part of their website with less direct access.

2. With regard to the language of the warnings, for those websites that adopt Spanish to advertise the products and services offered, CIFs must place the text of these warnings in the same language, including those corresponding to secondary documents.

3. If CIFs wish to include in their general website – and not in a specific one for each user and transaction – a warning on the “cost of closing the position”, this may be drafted in terms of the mechanism or manner for determining that cost (instead of the exact amount in euros). This will possibly reduce the delay in executing the order in question.

On this occasion, CySec reiterates the duty of CIFs to fully comply with the provisions laid down min the Circular and urges CIFs to do so.

Sourc: CySec – CySec Circular to CIFs

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