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We researched and summarised for you, all recent regulatory updates from Cyprus and Europe, which are applicable for Regulated Companies operating in the Region.
We support our clients and associates by providing a comprehensive page with the recent circulars, directives, and guidance issued by the following Regulators:
17/09/2024 – C657 - FATF's report titled 'Status of implementation of Recommendation 15 by FATF Members and Jurisdictions with Materially Important VASP Activity'
On March 28, 2024, the Financial Action Task Force (the 'FATF') published a report entitled 'Status of Implementation of Recommendation 15 by FATF Members and Jurisdictions with Materially Important VASP1 Activity' (the 'Report').
CySEC encourages the Regulated Entities to take into account the aforementioned FATF's report and enhance their risk-based approach under the Prevention and Suppression of Money Laundering Activities Law (L. 188(I) 2007) as amended from time to time.
26/09/2024 – C658 - Management Companies and Self-Managed Funds Quarterly Statistics – Submission for Q3 2024 (30/09/2024)
The latest version of the form, QST-MC Version 21 ('the Form'), found in the Appendix, must be completed and submitted to CySEC by all Regulated Entities that were authorised or appointed to act as External Managers.
26/09/2024 – C659 - Fractionalisation of Shares
CySEC has issued this Circular to provide guidance on the cases where fractional exposure in shares in companies, within the meaning of the Investment Services and Activities and Regulated Markets Law, transposing MiFID II1 ('Shares'2 and ‘'Law 87(I)/' 2017' respectively), would qualify as exposure in Shares per se.
C659 - Fractionalisation of shares
22/10/2024 – C662 - Adoption of the European Βanking Αuthority (the EBA) Guidelines on the application of the group capital test for investment firm groups in accordance with Article 8 of Regulation (EU) 2033/2019 (the IFR)
CySEC brings to the attention of the CIFs the EBA Guidelines, which were issued on July 28, 2021, regarding the application of the group capital test for investment firm groups following Article 8 of IFR (the Guidelines).
CySEC has adopted the Guidelines by incorporating them into its supervisory practices and regulatory approach.
03/09/2024 - Statistics on Interest Rates applied by Monetary Financial Institutions
CBC has today released the statistics on the average interest rates applied by monetary financial institutions in Cyprus on deposits and loans of euro area residents in euro, as well as data regarding volumes (amounts) of new euro denominated loans to euro area residents for the reference month of July 2024. These statistics are included in the August 2024 edition of Monetary and Financial Statistics.
Statistics on the interest rates
10/09/2024 - CBC publishes detailed interest rate data for deposits and loans for each credit institution
To further enhance transparency, CBC publishes detailed interest rate data for deposits and loans for each credit institution.
Available in Greek
20/09/2024 - Aggregate Cyprus banking sector data (profitability, balance sheet and capital adequacy data) with reference date 30 June 2024
CBC published updated aggregate Cyprus banking sector data (profitability, balance sheet and capital adequacy data) with a reference date of 30 June 2024.
Aggregate Cyprus Banking Sector Data
20/09/2024 - Aggregate Cyprus banking sector data (non-performing loans data) with reference date 30 June 2024
CBC published updated aggregate Cyprus banking sector data (non-performing loans data) with a reference date of 30 June 2024.
Aggregate Cyprus Banking Sector Data - non performing loans
25/09/2024 - Bank Lending Survey (BLS)
CBC published the Bank Lending Survey (BLS) for the second quarter of 2024 (in Greek only).
- The credit standards for enterprise loans tightened in the second quarter of 2024. The terms and conditions and the net demand for business loans remained unchanged.
- The credit standards for household loans remained unchanged in the second quarter of 2024. The overall terms and conditions for housing loans eased in the second quarter of 2024, while they remained unchanged for consumer credit and other household lending. The net demand for housing loans, as well as for consumer credit and other lending, decreased.
26/09/2024 - Monetary Financial Institutions (MFIs) Deposits and Loans Statistics
CBC released the MFIs deposits and loans statistics for the reference month of August 2024, which are included in the September 2024 edition of Monetary and Financial Statistics.
MFIs Deposits & Loans Statistics
30/09/2024 - The Central Bank of Cyprus (CBC) leaves the countercyclical buffer rate unchanged at 1%
Following the provisions of the Macroprudential Oversight of Institutions Laws of 2015 to 2022, CBC deemed it appropriate to maintain the countercyclical buffer (CCyB) rate at 1%.
Countercyclical Buffer Rate (CCyB)
02/10/2024 - Statistics on Interest Rates applied by Monetary Financial Institutions
CBC released the statistics on the average interest rates applied by monetary financial institutions in Cyprus on deposits and loans of euro area residents in euro, as well as data regarding volumes (amounts) of new euro denominated loans to euro area residents for the reference month of August 2024. These statistics are included in the September 2024 edition of Monetary and Financial Statistics.
Read the interest rates statistics (MFI)
14/10/2024 - Detailed interest rate data for deposits and loans for each credit institution
To further enhance transparency, CBC publishes detailed interest rate data for deposits and loans for each credit institution.
Available in Greek
25/10/2024 - Monetary Financial Institutions (MFIs) Deposits and Loans Statistics
CBC released the MFIs deposits and loans statistics for the reference month of September 2024, which are included in the October 2024 edition of Monetary and Financial Statistics.
31/10/2024 - Quarterly Financial Accounts
CBC released the publication Quarterly Financial Accounts (QFA), which provides aggregated data on the financial assets and liabilities of the economic sector for the reference quarter ending June 2024.
31/10/2024 - Publication of External Statistics data
The Statistics Department of the CBC released the provisional data for external statistics (balance of payments, international investment position and external debt) for the second quarter of 2024 (Q2 2024), as well as the revised data of the said statistics for the years 2008 - 2023 and the first quarter of 2024 (2024 Q1).
Read the External Statistics Data
31/10/2024 - Statistics on Interest Rates applied by Monetary Financial Institutions
CBC released the statistics on the average interest rates1 applied by monetary financial institutions in Cyprus on deposits and loans of euro area residents in euro, as well as data regarding volumes (amounts) of new euro denominated loans to euro area residents for the reference month of September 2024.
03/09/2024 - OPINION OF THE ECB of 30 August 2024 on a proposal for a regulation on a framework for Financial Data Access and amending Regulations (EU) No 1093/2010, (EU) No 1094/2010, (EU) No 1095/2010 and (EU) 2022/2554 (CON/2024/29)
On June 28, 2023, the European Commission proposed a regulation to establish a framework for financial data access, amending several EU regulations. Recognising its relevance to its competencies, the ECB has issued an opinion on the proposal under its rights outlined in Articles 127(4) and 282(5) of the Treaty on the Functioning of the European Union (TFEU).
Read the ECB opinion for Financial Data Access
12/09/2024 - Combined monetary policy decisions and statement
The Governing Council decided to lower the deposit facility rate through which it steers the monetary policy stance – by 25 basis points. Based on the Governing Council's updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, it is now appropriate to take another step in moderating the degree of monetary policy restriction.
17/10/2024 - Combined monetary policy decisions and statement
The Governing Council decided to lower the three key ECB interest rates by 25 basis points. In particular, the decision to lower the deposit facility rate – the rate through which the Governing Council steers the monetary policy stance – is based on its updated assessment of the inflation outlook, underlying inflation dynamics, and the strength of monetary policy transmission. The incoming information on inflation shows that the disinflationary process is well on track. The inflation outlook is also affected by recent downside surprises in indicators of economic activity. Meanwhile, financing conditions remain restrictive.
09/09/2024 - EBA launches 2024 EU-wide transparency exercise
EBA launched the 2024 EU-wide transparency exercise. Ahead of the 2025 stress tests, this year's transparency exercise will offer preliminary and valuable insights into the health and resilience of Europe's banking sector. The results will be published at the end of November, together with the release of the Risk Assessment Report (RAR).
10/09/2024 - ESAs warn of risks from economic and geopolitical events
The three ESA (EBA, EIOPA and ESMA - ESAs) issued their Autumn 2024 Joint Committee Report on risks and vulnerabilities in the EU financial system. The Report underlines ongoing high economic and geopolitical uncertainties. The ESAs warn national supervisors of the financial stability risks stemming from these uncertainties and call for continued vigilance from all financial market participants. For the first time, the Report also includes a cross-sectoral deep dive into credit risks in the financial sector.
Read the risks and vulnerabilities in the EU financial system
12/09/2024 - EBA issues revised list of ITS validation rules
EBA issued a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting, highlighting those that have been deactivated either for incorrectness or for triggering IT problems. Competent Authorities throughout the EU are informed that data submitted in accordance with these ITS should not be formally validated against the set of deactivated rules.
Read the revised list of ITS validation rules
09/10/2024 - The EBA publishes Guidelines on redemption plans under the Markets in Crypto-Assets Regulation
EBA published its final Guidelines on the orderly redemption of token holders in case of a crisis of the issuer. The Guidelines, which are addressed to competent authorities designated under the Markets in Crypto-Assets Regulation (MiCAR), cover issuers of asset-referenced tokens (ARTs) and of e-money tokens (EMTs).
Read the guidelines of redemption plans
11/10/2024 - EBA consults on draft technical standards to support the centralised EBA Pillar 3 data hub
EBA launched a consultation on the Pillar 3 data hub, which will centralise prudential disclosures by institutions through a single electronic access point on the EBA website. This project is part of the Banking Package laid down in the Capital Requirements Regulation (CRR3) and Capital Requirements Directive (CRD6). This consultation runs until 11 November.
Read EBA consultation on draft technical standards - EBA Pillar 3 data hub
15/10/2024 - ESAs respond to the European Commission's rejection of the technical standards on registers of information under the Digital Operational Resilience Act and call for swift adoption
ESA (EBA, EIOPA and ESMA – the ESAs) issued an Opinion on the European Commission's (EC) rejection of the draft Implementing Technical Standards (ITS) on the registers of information under the Digital Operational Resilience Act (DORA). The ESAs raise concerns over the impacts and practicalities of the proposed EC changes to the draft ITS on the registers of information in relation to financial entities' contractual arrangements with ICT third-party service providers.
Read ESAs response to European Commission
22/10/2024 - EBA clarifies the procedure for the classification of asset referenced tokens and e-money tokens as significant and the transfer of supervisory powers between the EBA and competent authorities
EBA published a Decision setting out the procedural aspects related to the significance assessment of asset-referenced tokens (ARTs) and e-money tokens (EMTs) and the transfer of supervisory responsibilities, including the establishment of supervisory colleges for significant ARTs (s-ARTs) and significant EMTs (s-EMTs).
Read EBA's clarification on asset referenced tokens and e-money tokens
23/10/2024 - The EBA releases a first draft of the technical package for its 4.0 reporting framework
EBA published a draft technical package for version 4.0 of its reporting framework. This publication aims to provide an early version of the 4.0 release, given that its reporting obligations will apply as of the first half of 2025. This package, whose final version will be released in December 2024, will facilitate a smoother transition to the new data point model (DPM) semantic glossary and the capabilities of the DPM 2.0 model.
Read EBA first draft of the technical package - 4.0 reporting framework
28/10/2024 - EBA consults on draft technical standards for structural foreign exchange positions
EBA in a public consultation on its draft Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) on structural foreign exchange (FX) under the Capital Requirements Regulation (CRR). These standards will provide further clarity and consistency to the structural FX provision across the EU. The consultation runs until 7 February 2025.
Read EBAs draft on technical standards for structural foreign exchange positions
29/10/2024 - EBA asks for input from entities falling within the scope of initial margin model authorisation under the revised European Market Infrastructure Regulation
In cooperation with ESMA and EIOPA, EBA published a short survey addressing entities within the scope of the initial margin (IM) model authorisation regime introduced by the upcoming revised European Market Infrastructure Regulation.
30/10/2024 - ESAs publish 2024 Joint Report on principal adverse impacts disclosures under the Sustainable Finance Disclosure Regulation
ESA (EBA, EIOPA and ESMA – ESAs) have published their third annual Report on disclosures of principal adverse impacts under the Sustainable Finance Disclosure Regulation (SFDR)
Read the 3rd Annual Report on disclosures of principal adverse impacts under SFDR
01/10/2024 - ESMA 2025 Work Programme: Focus on key strategic priorities and implementation of new mandates
ESMA, the EU's financial markets regulator and supervisor, has published its 2025 Annual Work Programme (AWP), which reaffirms ESMA's strategic orientation and commitment to safeguarding resilient, transparent, and sustainable European financial markets.
28/10/2024 - ESMA consults on amendments to MiFID research regime
ESMA, the EU's financial markets regulator and supervisor, has launched a consultation on amendments to the research provisions in the Markets in Financial Instruments II (MiFID II) Delegated Directive following changes introduced by the Listing Act.
Read the amendments - MiFID research regime
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