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Navigating New Reporting Standards: CySEC’s Guidance for Cyprus Investment Firms

The Cyprus Securities and Exchange Commission (CySEC) has released an essential update aimed at all Cyprus Investment Firms (CIFs) on how to report cross-border investment activities within the European Economic Area (EEA) for the coming year.

This change, built on Circular C694 under section 25(1)(c)(ii) and (iii) of the CySEC Law, aligns with broader European initiatives spearheaded by the European Securities and Markets Authority (ESMA). Prime focus is on CIFs extending their services beyond national borders to countries like Norway, Iceland, and Liechtenstein.

Key Reporting Requirements

CIFs must complete an online questionnaire for activities between January 1 and December 31, 2024, particularly if more than 50 retail clients are involved. Services under the “freedom to provide services” must be reported, excluding those provided through local branches.

Reporting of inactive clients is not needed unless they still generate revenue despite inactivity. Each host member state with significant client activity requires a separate submission, excluding Cyprus as a home state from this requirement.

The deadline for these submissions is May 26, 2025, with an email and password necessary to access the reporting platform. Important: Preserve submission confirmations as evidence of compliance.

Consequences Of Non-Compliance

CySEC warns that failing to adhere to these guidelines could result in administrative penalties. There will be no reminders for missing submissions—CIFs must ensure their reporting is on time and accurate.

Cyprus Secures ESA Associate Membership: A Strategic Leap in Global Space Innovation

Historic Milestone For Cyprus

Cyprus has taken a decisive step towards strengthening its strategic position in the European and international space community. On Thursday, the Republic of Cyprus signed a Memorandum of Understanding with the European Space Agency (ESA), officially paving the way for its transition to associate member status. This landmark agreement was signed by Deputy Research Minister Nicodemos Damianou for Cyprus and ESA Director General Josef Aschbacher at the Agency’s headquarters in Paris.

Enhancing National Competitiveness And Investment

The new status will significantly bolster Cyprus’ national space ecosystem by opening access to ESA mechanisms and programmes. This development is set to enhance the country’s competitiveness, drive innovation, and attract strategic investments – key elements that underpin the National Space Strategy. Moreover, Cyprus is poised to tap into extensive European funding and bolster international cooperation, thereby reaffirming its role as a reliable partner in Europe’s digital and technological future.

Years Of Dedicated Preparation And Strategic Growth

In his address at ESA headquarters, Deputy Research Minister Damianou emphasized that this achievement is the culmination of years of dedicated preparation and cooperation with the agency. Citing the gradual progress made since the 2009 Cooperation Agreement, he highlighted recent strides in developing the necessary expertise, institutional framework, and a comprehensive legal structure aligned with international standards such as the Outer Space Treaty and the Liability Convention.

Key Infrastructure Developments And Innovations

Cyprus’ investments in its space infrastructure further underscore its commitment to becoming a significant player in the European space sector. Recent milestones include the inauguration of the Cyprus Space Research & Innovation Centre and the new Space Incubation Centre, complemented by the upcoming Earth Observation Ground Station. With over 300 days of sunshine annually and robust telecommunications, the country offers an ideal environment for hosting advanced satellite ground stations, control centres, and data gateways.

A Promising Future In European Space Leadership

The enhanced association with ESA comes at a pivotal time, particularly with Cyprus preparing for its Presidency of the Council of the European Union in early 2026. The Deputy Minister underscored that space is poised to become a key pillar in promoting Europe’s growth, competitiveness, and strategic autonomy. With this momentum, Cyprus is set to transform its space ambitions into tangible benefits for both its citizens and the broader European economy.

Commitment To Shared Progress And Cooperation

In closing remarks, both Cypriot and ESA leaders expressed deep appreciation for the collaborative efforts that made this transition possible. As ESA Director General Aschbacher congratulated Cyprus on its commitment to space and innovation, he extended a warm welcome to the citizens of Cyprus for a journey marked by discovery, technological advancement, and shared strategic benefits. With ratification by the House of Representatives in the upcoming months, Cyprus’ associate membership marks the beginning of an era characterized by expanded access to ESA programmes, funding, and collaborative opportunities across Europe’s dynamic space landscape.

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