As in accordance with Circular 217 – Use of Affiliates, when CIFs use affiliates to promote its services and products must ensure that the selected affiliate acts in compliance with the laws and regulations imposed by CySEC and the jurisdiction the affiliate operates in. Responsibility of marketing remains always with the CIF therefor the CIF must take such actions and measures to control its affiliates. In summary, a CIF must:

• have sufficient controls, measures and supervision over its affiliates
• ensure marketing material promoted by affiliates is compliant with article 36 of the Investment Services and Activities and Regulated Markets Law of 2007
• use/develop tools that allow sufficient monitoring of its affiliates
• make public, at least through its website of all affiliates which the CIF is in cooperation with as well as affiliates that the cooperation has been terminated, especially when termination is due to breach of contract or the distribution of unauthorized marketing material