CySEC Circular C534 – Provision of investment and ancillary services and/or performance of investment activities in third countries

During their Board meeting, the Cyprus Securities and Exchange Commission (“CySEC”) concluded to the replacement of Circular 256 by issuing Circular C534, regarding the provision of investment and ancillary services and/or performance of investment activities in third countries.

CySEC stated the need for CIFs of notifying CySEC via a letter for their intentions to provide investment and ancillary services and/or perform investment activities in third countries.

More specifically, the CIFs should perform the following actions:

  1. i) Prior to providing/performing the said services/activities in third countries, CIFs need to acquire the necessary authorisation by the respective competent Authorities of the third countries, in accordance with their legislative framework.
  2. ii) CIFs should provide CySEC with a certified copy of the authorisation for the provision of these services by the competent Authority of the third country.
  • iii) In the case that the third country does not require such authorization, the CIF must provide CySEC a relevant certificate from the Competent Authority of the Third country, stating that the legislation does not require such authorisation for the services/activities to be carried out.

The main change with the issuance of the new Circular C534, refers to the point (iii) above – Please note that a legal opinion (issued by a qualified lawyer or legal firm) shall not suffice anymore, as the Commission shall require a certificate form the respective competent authority of the third country instead.

CIFs that are already operating in third countries should ensure that they continue to comply with the Legislative Framework applicable in the relevant Third Country.

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