The CX Financia team would like to inform you that the new Investment Firm Prudential Supervision Law (Law 165(I)/2021) (hereinafter the “Law”) has been recently voted and published at the Official Gazette of the Republic of Cyprus.

The Law sets the new initial capital requirements, internal governance arrangements, prudential consolidation supervision, Internal Capital Adequacy and Risk Assessment Process, remuneration policies etc.

Initial Capital Requirements per Prudential Supervision

At this point, let’s revisit the new Initial Capital Requirements:

• Portfolio Management or Investment Advisory CIF without holding Clients Funds €50k -> €75k
• STP CIF with holding Client funds €125k -> €150k
• Market Maker or DOA CIF with holding Client funds €730k -> €750k

Furthermore, please note that the following bills have been also approved and published:

• The Resolution of Credit Institutions and Investment Firms Law (Amended) of 2021, L.158(I)/2021
• The Investment activities and operations of regulated markets Law (Amended) of 2021, L159(I)/2021
• The Macroprudential Oversight of Institutions Law (Amended) of 2021, L.161(I)/2021
• The Credit Institutions Law (Amended) of 2020 and 2021, L.162(I)/2021 and L.163(I)/2021
• The Capital Adequacy Investment Firms (Amended) Law of 2021, L.164(I)/2021

Do not hesitate to contact us to find more about how CX Financia can assist you to adapt your firm’s risk management framework under the new prudential legislations.