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MiFID/ MiFID II/MiFIR Compliance

Compliance Services to Investment Firms and Financial Institutions

MiFID

MiFID was officially adopted on 30 March 2004 and has brought a cyclone of changes for investment service providers. MiFID was transposed into Cypriot legislation with the Law 144(I) of 2007 (Law which provides for the Provision of Investment Services, the Exercise of Investment Activities, the Operation of Regulated Markets). Our professionals are experts in this field with more than 20 years experience. We offer our clients the following services:

  • Consulting on the form of a financial group’s presence in Cyprus and the rest of the EU (IF, CIF, Investment Branch or other, depending on the Client’s needs)
  • Advisory support towards authorisation and registration of an EU Investment Firm
  • Preparation of the application file in accordance with current regulatory requirements
  • Incorporation of documents
    • Company’s Memorandum and Articles of Association
    • Business plan
    • Internal operations manual / internal regulation and relevant procedures
    • Anti-money laundering provisions
    • Due diligence provisions
    • Risk management provisions
    • Representation of the Client before the Cyprus Securities and Exchange Commission (CySEC) and the Central Bank of Cyprus and other EU supervisory authorities
  • Legal opinions
  • Drafting of client agreements
  • Drafting of directors’ and executives’ agreements
  • Locating qualified directors and personnel (if needed)
  • Anti-Money laundering compliance
  • Supervision issues
  • Advice on capital adequacy directive
  • Advice on merger control/antitrust
  • Compliance with national and EU Laws
  • Accounting and auditing support

 

MiFID II / MiFIR

The MiFID II legislative proposal consisting of an amending Directive (Directive 2014/65/EU) and a new regulation (EU Regulation No 600/2014 – the Markets in Financial Instruments Regulation (MiFIR)), were approved by the European Parliament in plenary session on 15 April 2014 and adopted by the Council of the EU on 13 May 2014. The final texts of MiFID II and MiFIR were published in the Official Journal on 12 June 2014.

 

National transposition is expected by 3 July 2016, while the new rules will apply from 3 January 2017.

 

MiFID II introduces significant changes in the following main areas:

  • Scope
    • Extends the definition of investment services
    • Extends the definition of financial instruments
    • Restricting certain MiFID exemptions
  • Market structure
    • Introduces new category of trading venue
    • Amends existing trading venues’ obligations
    • Trading reports to capture additional traders’ information
    • Reporting pre- and post- data trading to reporting venues
  • Good governance requirements
    • Investment firms’ managing bodies to be held accountable for the overall strategy of the firm
    • Additional criteria for qualified senior management
    • New instructions on inducements and remuneration of staff
  • Investor protection
    • Additional requirement for dispensing investment advice
    • Detailed information on fees and commissions paid to or by investment firms
  • Increased regulatory oversight
    • Ability to impose limits to financial products
    • Ability to ban access to financial products/activities
  • Third country access
    • Third country investment firms servicing EU based eligible counterparties to register with ESMA (EU based branch is not required in these cases)
    • Third country investment firms servicing EU based retail/professional clients required to establish a branch in an EU country.

We monitor closely all regulatory developments at a national and EU level and we are ready to assist our clients to adapt and prepare for the new and challenging regulatory environment and developments.

 

We can provide comprehensive and holistic solutions tailored to each client’s individual needs for a smooth MiFID II implementation such as:

  • Regulatory analysis of impact on your business/operations
  • Development of an action plan for compliance
  • Determine areas with revenue/financial impact
  • Training and education on new regulatory requirements.
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