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.
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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.
