CySEC Circular C487 – Redefining Threshold Criteria of a Significant CIF

MNK Risk Consulting > Regulatory Developments > CySEC Circular C487 – Redefining Threshold Criteria of a Significant CIF

In light of the ‘New prudential framework for investment firms’ and the ‘The Investment Services Law’, CYSEC has replaced an earlier Circular C228 and redefined the threshold criteria that determine a significant CIF.

The key takeaways from the CySEC’s latest circular are outlined below:

  1. Limitations on directorships and establishment of nomination/risk/remuneration committees for ‘Significant CIFs’:
  • Members of Significant CIFs shall not hold more than one of the following combinations of directorships provided by section 9(4) of the Investment Services Law:
    • One executive directorship with two non-executive directorship in any company, and
    • Four non-executive directorships in any company.
  • Significant CIFs shall establish a Nomination Committee
  • Significant CIFs shall establish a Risk Committee
  • Significant CIFs shall establish a Remuneration Committee.
  • Definition of a ‘significant CIF’ for the purposes of Investment Services Law
  • A CIF shall be considered significant where its total on and off-balance sheet assets are on average greater than EUR 100 million over the four-year period immediately preceding the given financial year.   
  • Frequency of assessment
  • CIFs should, within four months from the financial year-end, assess whether they meet the threshold defined above to become a ‘Significant CIF’.
  • In case a CIF meets the threshold, it should take all necessary measures to comply with the relevant framework and inform CySEC of the following:
    • take all necessary measures to comply with the requirements that apply to a ‘significant CIF’ as per the Investment Services Law,
    • take all necessary measures to comply with the relevant requirements of the Prudential Law and
    • forthwith inform CySEC accordingly and submit its new organisational structure through CySEC’s portal.

Contact us should you need more information

info@mnkriskconsulting.com

25 508 201

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