The Cyprus Securities and Exchange Commission (CySEC) has
issued a reminder to Cyprus Investment Firms (CIFs) regarding the stance of the
Polish Financial Supervision Authority (UKNF) on referral and affiliate
programmes.
UKNF Bans Individualized Client Acquisition
The UKNF’s position, dated October 2023, prohibits clients
of investment firms or unregulated intermediaries from engaging in
individualized client acquisition activities through such programmes.
CySEC noted in its web release that “the UKNF Position
forbids clients of an investment firm or unregulated intermediaries from
undertaking, under referral programmes or affiliate programmes, individualized
actions to acquire clients or potential clients of investment services.”
CySEC Urges Compliance with UKNF
It also restricts the sharing of information on the scope of
services provided by investment firms. Only the firms or their tied agents are
permitted to carry out these actions.
The regulator further added: “Moreover, it forbids such
persons from providing information about the scope of the investment services
provided by the investment firm.”
CySEC has urged CIFs to take appropriate measures to ensure
compliance with the UKNF’s position.
CySEC Adopts EBA Guidelines, Sets Crypto Deadline
The CySEC
has adopted new European Banking Authority (EBA) guidelines, set to take
effect in 2025, as reported by Finance
Magnates. These guidelines clarify the application of the group capital
test for investment firms under the Investment Firms Regulation.
The
guidelines require investment firm groups to meet consolidated regulatory
standards, similar to banking groups, covering capital adequacy, risk
management, and governance.
CySEC
has also announced a deadline for crypto-asset service providers operating
in the European Economic Area. As of October 30, 2024, CySEC will no longer
accept notifications from EEA firms for cross-border crypto services.
Firms
that notify CySEC by this date will be allowed to operate under a transitional
period until July 1, 2026, or until their MiCA authorization decision is made,
ahead of the Markets in Crypto-Assets regulation, which will take effect on
December 30, 2024.
This article was written by Tareq Sikder at www.financemagnates.com.
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