Adherence to the CNMV Resolution and CySEC Circular C602
The financial regulatory landscape continues to evolve, with the Cyprus Securities and Exchange Commission (CySEC) issuing a vital Circular C602 on the 12th of October 2023. The circular discusses the requirements of the Spanish National Securities Market Commission (CNMV) relating to contract for differences (CFDs) and other leveraged products. This circular serves as a wake-up call for Cyprus Investment Firms (CIF), underlining the significance of regulatory compliance and investor protection.
Key Provisions of the CNMV Resolution
Effective from 3 August 2023, the Resolution issued by the CNMV introduces several key provisions to safeguard the interests of retail investors in Spain:
- Advertisement Ban: Retail CFDs and similar leveraged products are no longer permitted to be advertised to retail investors.
- Restrictions on Remuneration and Sales Techniques: The Resolution prohibits specific remuneration policies and sales techniques.
- Intervention Measures: Comprehensive intervention measures are established for the marketing, sale, and distribution of other leveraged instruments to retail investors.
Extraterritorial Impact
It’s crucial to recognise that these measures apply to all entities authorised to provide investment services in Spain. This includes entities without a physical presence in Spain, operating under the freedom to provide services without establishment, such as Cyprus Investment Firms (CIF) regulated by CySEC.
In response to these regulatory changes, SALVUS Funds stands ready to assist CIF operating in Spain. Our Regulatory Compliance team is well-equipped to help you navigate these evolving regulatory waters, ensuring compliance with the CNMV Resolution and providing support for your investment services.
For more information and assistance in navigating this CNMV Resolution, please contact the SALVUS Regulatory Compliance team at info@salvusfunds.com. Your regulatory compliance is our priority.
#StayAhead
