CySEC

CySEC Circular C576: Essential Reporting Guidelines for CIFs Explained

As we approach the mid-year mark, it’s crucial for Cyprus Investment Firms (CIFs) to stay on top of their reporting obligations as mandated by CySEC’s Circular C576. This reminder highlights the key reporting deadlines and requirements to ensure compliance.

Overview of CySEC Circular C576

CySEC Circular C576, issued in June 2023, incorporates two essential EBA guidelines:

  1. Benchmarking Exercises on Remuneration Practices and Gender Pay Gap (Directive (EU) 2019/2034, EBA/GL/2022/07).
  2. Data Collection Exercises Regarding High Earners (Directive 2013/36/EU and Directive (EU) 2019/2034, EBA/GL/2022/08).

These guidelines aim to standardize reporting practices and enhance transparency within the financial sector.

Key Reporting Obligations for 2024

  1. Benchmarking Exercises on Remuneration Practices and Gender Pay Gap

Remuneration Data Submission:

    • Who Must Report: CIFs with initial capital requirements of €150,000 and €750,000.
    • What to Report:
      • Information on remuneration of all staff (Annex I).
      • Additional information on remuneration for identified staff (Annex II and III).
      • Information on derogations (Annex IV).
    • When to Report: By June 15 each year.
    • Special Deadline: For FY 2023 data, submission is due by August 31, 2024.

Gender Pay Data Submission:

    • Who Must Report: CIFs as specified above.
    • What to Report: Gender pay data (Annex V).
    • When to Report: By June 15 every three years, starting from 2024.
  1. Data Collection Exercises Regarding High Earners

High Earners Data Submission:

    • Who Must Report: CIFs with staff earning at least €1 million in the reported financial year.
    • What to Report: Data on high earners.
    • When to Report: By June 15 each year.
    • Special Deadline: For FY 2023 data, submission is due by August 31, 2024.

Important Notes:

    • Data should be reported at the level of consolidation set out in Article 7 of Regulation (EU) 2019/2033.
    • For stand-alone investment firms, data should be reported on an individual basis.

Submission Process

All data must be submitted through CySEC’s XBRL portal, which has been updated to facilitate these submissions. This portal ensures secure and efficient submission of sensitive financial information.

Compliance and Best Practices

To ensure compliance with CySEC’s guidelines:

  1. Review Internal Processes: Assess and update your firm’s data collection and reporting processes.
  2. Train Staff: Ensure that relevant staff are aware of the new requirements and deadlines.
  3. Utilize Technology: Leverage the XBRL portal for streamlined and accurate submissions.
  4. Consult Experts: If necessary, seek guidance from compliance professionals to navigate complex reporting requirements.

Implications for CIFs

Non-compliance with these reporting obligations can lead to regulatory scrutiny and potential penalties. Therefore, it is crucial for CIFs to stay informed and prepared for these upcoming requirements.

By adhering to these guidelines, CIFs contribute to a transparent and fair financial environment within the European Union, enhancing investor confidence and market integrity.

Summary Table of Reporting Obligations

Report Type Reportable Entity Submission Deadline Frequency Data Type
Remuneration Data Investment Firm (€150k/€750k) June 15 each year Annually Remuneration of all staff, identified staff, and derogations (Annex I-IV)
Gender Pay Data Investment Firm (€150k/€750k) June 15 every three years Every three years Gender pay data (Annex V)
High Earners Data Investment Firm (€150k/€750k) June 15 each year Annually Staff earning €1 million or more
Remuneration Data for FY 2023 Investment Firm (€150k/€750k) August 31, 2024 One-time Remuneration data for FY 2023
High Earners Data for FY 2023 Investment Firm (€150k/€750k) August 31, 2024 One-time High earners data for FY 2023

All reports should be submitted to CySEC through CySEC’s XBRL portal.

Conclusion

As we move through 2024, it is imperative for Cyprus Investment Firms to stay vigilant about their reporting obligations under CySEC Circular C576. The upcoming deadlines for remuneration and high earners data are crucial for compliance. Ensure your firm is prepared, review internal processes, and leverage the XBRL portal for seamless submissions. Compliance not only avoids penalties but also fosters a transparent and robust financial environment within the EU. Stay proactive and maintain adherence to these essential reporting requirements.

For further details, refer to CySEC’s official documentation and guidelines.

Tags

Get the latest business news, directly to your inbox

SUBSCRIBE NOW