The Cyprus Securities and Exchange Commission (CySEC) elaborates on the Cross Border Data Collection Exercise, regarding cross-border activity (CBRT) of Cyprus Investment Firms (CIF) through Circular C615, issued on the 15^th of January 2024. As previously reported in Circular C612, CIF regulated entities shall complete the European Securities and Markets Authority’s (ESMA) CBRT Exercise, regarding cross-border activity of investment firms for the year 2023. Specifically, only CIF regulated entities that reach the materiality threshold of having at least 50 retail clients in at least one host Member State except Cyprus shall participate in the exercise.

An email with the link and a password to access the online questionnaire will be sent to all CIF entities that reach the materiality threshold set out above. With this link, entities shall complete and submit the questionnaire by the 31^st of January 2024.

The form is comprised of two parts. The first part requires the disclosure of information on the investment firm and the contact person responsible for this reporting template, as well as the selection of the host EU member states where they provide cross-border services. When the countries are selected, respective tabs for each country will appear on the ‘Pages’ panel. The tab for each EU Member State will be named according to its 2-digit country code. CIF regulated entities shall fill in the information for all tabs opened.

In the second part, the firm shall provide information on passporting activities offered, to retail clients including clients categorised as elective professionals, in other member states.

When completing the form, entities shall report only active clients and exclude any inactive clients. Inactive clients are considered those who are cumulatively:

1. inactive for at least a year,
2. no longer provided with any investment and/or ancillary services, and
3. not creating any profits for the firm during the inactivity period.

The information provided shall only refer to services and activities provided on the freedom to provide services basis, excluding services and activities provided on the freedom of establishment basis.

It is highlighted that the data shall be provided with a reference date of 31^st December 2023 or regarding 2023.

When submitting the form, the message “Contribution successfully submitted” and a contribution ID shall appear on the screen. CIF regulated entities are urged to save their contribution ID for future use.

For more regulatory reporting obligations CIF regulated entities must meet in 2024, please visit the SALVUS Regulatory Reporting Obligations Calendar™.

Contact us at compliance@salvusfunds.com if you require additional information or support with the completion of the CBRT exercise; our Regulatory Compliance team is ready to assist you.

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