Home / Regulatory Developments / Circular C204 (“the Circular”) dated 04.05.17 regarding the freedom to provide investment and ancillary services and / or perform investment activities in a third country

Circular C204 (“the Circular”) dated 04.05.17 regarding the freedom to provide investment and ancillary services and / or perform investment activities in a third country

We would like to draw your attention to Circular C204, that was issued by CySEC on 04.05.17, regarding the regarding the freedom to provide investment and ancillary services and / or perform investment activities in a third country. The Circular was issued in continuance to the provisions of Circular C192.

CySEC, in the context of its supervisory powers, requests from CIFs the following:

  1. To assess their existing third-country-passports and consult with their legal consultants by taking the appropriate legal advice, and / or letters / official documents from the competent authority of the host third-country, affirming either the carrying out of legitimate investment services and activities (holding a relevant authorisation), or the exception of holding such authorisation, in that territory;
  2. To submit by 31.05.17 via CySEC’s Portal as a free text with title: “C204 – Freedom to provide investment and ancillary services and / or perform investment activities in a third country”, the following:
  • A confirmation letter signed by all Board members regarding the CIF’s compliance with paragraph 1 of the Circular;
  • A list of third-countries that the CIF provides investment and ancillary services and / or performs investment activities, stating for each country whether a legal advice or letter / official document has been obtained. CIFs are not obliged to submit the relevant supporting evidence to CySEC but this shall be available for inspection when CySEC deems necessary.

CySEC’s expects that: CIFs will take into account the aforementioned when preparing and submitting the information requested in paragraph 2 of the Circular, in order to ensure timely and full compliance with their obligations deriving from Law144(I)/2007 and / or Directives and / or European Regulations (“the relevant legislation”). In case of noncompliance with the Circular, CySEC draws to the attention of all CIFs, that the relevant legislation provides that CySEC within its supervisory powers, may take the necessary supervisory decisions, including the imposition of appropriate administrative sanctions and / or the restriction of the CIF’s access to provide investment and ancillary services and / or perform investment activities in a third country and / or other administrative measures.

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