The Cyprus Securities and Exchange Commission (CySEC) issued on April 19, 2022 a circular, informing Cyprus Investment Firms (CIFs) of the European Securities and Markets Authority (ESMA) Common Supervisory Approach (CSA) with National Competent Authorities (NCAs) on the application of MiFID II Costs and Charges disclosure rules.
The 2022 CSA will allow ESMA and NCAs to assess the application by firms of the MiFID II requirements on costs and charges. The focus of the CSA will be on information provided to retail clients. NCAs will review how firms ensure that these disclosures:
- are provided to clients in a timely manner.
- are fair, clear, and not misleading.
- are based on accurate data reflecting all explicit and implicit costs and charges.
- adequately disclose inducements.
In accordance with ESMA’s CSA, CySEC intends to perform on-site visits and/or desk-based reviews on a sample of CIFs that fall within the scope of the new CSA and provide investment services to retail clients. This effort will aim to review how CIFs implement the MiFID II fees and charges disclosure rules, as well as help improve the protection of investors in line with ESMA’s goals. The new CSA will be part of CySEC’s supervisory evaluation for 2022.
How can MAP S.Platis assist you?
Our team of experts can provide comprehensive and holistic solutions including:
- Compliance health-check reviews.
- Advice on policies, controls, and procedures relevant to Cost and Charges.
- Develop a tailored and practical action plan for compliance.
- Provide answers to queries (Q&A service).
- Training and education on regulatory requirements.
Contact us for more information on how we may assist you.