CySEC issued Circular C334 (“the Circular”) dated 07.08.19 requiring from all CIFs to keep in a separate EU Bank account an additional cash buffer in case there is a need for an extraordinary contribution to the Investors Compensation Fund (“ICF”).
- The minimum additional cash buffer amount is set at 0.3% of the eligible funds and financial instruments of a CIF’s clients as at the previous calendar year-end.
- CIFs must deduct the said additional cash buffer, in addition to the ICF contribution, from their Common Equity Tier 1 Capital.
- CIFs are required to include the additional cash buffer in the Capital Adequacy Common Reporting Form 144-14-06.1 to be submitted to CySEC by 11th November 2019 for the period ending 30th September 2019. This shall be the first reporting of the said additional cash buffer requirement and shall rely on the eligible funds and financial instruments of a CIF’s clients as at 31.12.2018.
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