CySEC Circular C578: ESMA35-43-3565 – Guidelines on certain aspects of the MIFID II remuneration requirements

MNK Risk Consulting > Regulatory Developments > CySEC Circular C578: ESMA35-43-3565 – Guidelines on certain aspects of the MIFID II remuneration requirements

Relevant to: Regulated Entities 1

Circular C578 (“the Circular”) dated 06/06/2023 informs Regulated Entities on ESMA Guidelines on certain aspects of the MIFID II remuneration requirements.

Through Circular C578, CySEC wishes to inform Regulated Entities that the European Securities and Markets Authority (ESMA) published, on April 3, 2023, the Guidelines on certain aspects of the MiFID II remuneration requirements (the ‘Guidelines’), translated in all official languages of the EU.

The key takeaways from CySEC’s C578 circular can be found below:

  • The Guidelines apply in relation to the remuneration requirements set out in Article 27 of the MiFID II Delegated Regulation as well as, on the one hand, the conflicts of interest requirements set out in Articles 16(3) and 23 of MiFID II and Article 34 of the MiFID II Delegated Regulation in the area of remuneration; and on the other hand, the conduct of business rules set out in Article 24(1) and (10) of MiFID II. In addition, the Guidelines clarify the application of the governance requirements in the area of remuneration under Article 9(3) of MIFID II.
  • The Guidelines apply as from October 5, 2023.
  • The Guidelines on remuneration policies and practices (MiFID, ESMA/2023/606), issued under MiFID I, will cease to apply on the same date.
  • CySEC further informs that it has adopted the Guidelines by incorporating them into its supervisory practices and regulatory approach and urges the Regulated Entities to carefully study the Guidelines and ensure that they fully comply with them.

Should you need more information or assistance with implementation of the Guidelines, you can email us at info@mnkriskconsulting.com or call us at 25-508201.


  • [1]Cyprus Investment Firms (‘CIFs’);
  •   UCITS Management Companies (‘UCITS MC’) as defined in Article 2(1)(b) of UCITS Directive (Directive     2009/65/EC), when providing the investment services of individual portfolio management or non-core services [within the meaning of Article 6(3)(a) and (b)(i) of UCITS Directive; and
  • Alternative Investment Fund Managers (‘AIFMs’) as defined in Article 5(1)(a) of the AIFMD (Directive 2011/61/EU), when providing the investment services of individual portfolio management or non-core services [within the meaning of Article 6(4)(a) and (b)(i) of the AIFMD].