The Cyprus Securities and Exchange Commission published a new circular today informing its licensees that they need to adhere to the reporting terms outlined in Cypriot law. Cyprus Investments Firms (CIFs) and their management need to comply with the provisions related to personnel changes in a timely manner.
According to CySEC’s announcement, every CIF must notify the regulator and provide information adequate to assess the suitability of executive hires. The reputation of senior management is a cornerstone of the reputation of a brokerage company.
“The persons that effectively direct the business of a CIF must notify in writing without undue delay, to the Commission and the CIF, of any new detail with regards their person, that could affect the sound and prudent management of the CIF. It is provided that the CIF bears the same obligation, if it knows or ought to have known of the new relevant details,” the circular outlines.
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Chairman Demetria Kalogerou is also clarifying in the document that CIFs are obliged to inform the regulator immediately about the resignation of any person who effectively directs the CIF’s business.
“CIFs should not expect that this vacancy is filled prior to notifying the resignation to CySEC. We indicatively note that the appointment of a new person who effectively directs the business of the CIF should be notified to CySEC as soon as possible and the latest within 15 days from the day the CIF is notified of the aforementioned resignation,” Mrs Kaloguerou outlines.
Firms are also expected to notify the regulator should they identify a situation in which any new information about associated persons may affect the management of the firm. The changes are expected to be submitted in writing to the regulator.