2018 will be a challenging year for the financial industry due to the upcoming changes in the regulatory framework for Cyprus Investment Firms (CIFs), according to the Chairwoman of the Cyprus Securities and Exchange Commission Mrs. Demetra Kalogerou.
Analysing the new requirements of MiFID II and MiFIR during the Cyprus International Investment Firms Association (ACIIF) Annual General Meeting at the Carob Mill in Limassol on December 5, Mrs. Kalogerou emphasised the new requirements on product governance, inducements and transaction reporting. Additionally, she referred to the PRIIPs Regulation which will also enter into force on January 2018.
Mrs. Kalogerou stressed that “in an ever-changing regulatory environment, it is imperative that firms appreciate the inter-connectivity of regulatory changes, and having a strategic plan in place that reflects all the upcoming regulatory changes that affect them.”
Commissioner for Personal Data Protection Irene Loizidou Nicolaidou also briefed members of the Association on the data protection changes.
The Commissioner made reference to the General Data Protection Regulation or GDPR, Regulation 2016/679, which came into effect in May 2016 but will be implemented from 25 May 2018.
‘It applies to the investment sector and it is an important economic tool, which can help boost the EU economy and social integration with a positive impact on EU enterprises,’ Nicolaidou said.
She argued that the digital economy has not been competitive because of consumer trust over what happens to the information provided by consumers online.
“GDPR is a legislative tool that regulates when personal data can move freely and when it cannot,” said Nicolaidou.
ACIIF Director Demetris Taxitaris said it is very important for the members of ACIIF, who are mostly foreign investors, to have close cooperation with regulatory authorities.
“We had a number of consultation papers during the last few years on which ACIIF provided constructive feedback and comments to the Cyprus Securities and Exchange Commission. And in 2017, we had an extensive project – an initiative to get legal opinions from third countries,” said Taxitaris.
“Participants were more than 40 in over 30 jurisdictions, we received different bids from 22 different jurisdictions globally,” he added.
ACIIF has seen its membership increase from 51 as at December 31, 2016, to 79 currently.
It was founded in December 2009 and all its members are licensed and regulated by the Cyprus Securities and Exchange Commission.
The event drew great interest by 150 participants – directors and officers – representing regulated investment firms.