1. Available CySEC certifications and their importance 

CySEC’s focus on education has driven the market’s growth by ensuring that professionals are qualified to hold key positions in regulated entities. To achieve this, CySEC offers three primary certifications for professionals in the investment services industry:

• CySEC Advanced Financial Services Legal Framework Examination
• CySEC Basic Financial Services Legal Framework Examination
• CySEC Anti-Money Laundering Compliance Officer (AMLCO) Examination

These exams ensure that professionals holding key roles possess the required knowledge and skills to effectively execute their duties, increasing market professionalism and boosting investor confidence.

2. What each CySEC exam includes and for which key positions is required

CySEC Advanced Certification

The CySEC Advanced certification is the most comprehensive qualification offered by the Cypriot regulator. In particular, the syllabus covers 14 chapters containing both national and European Union (EU) regulations including Law 87/2017 (main legislation for Cyprus Investment Firms), Markets in Financial Instruments Directive (MiFID II), Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT), AIFM Law, Open-Ended Undertakings for Collective Investments Laws (2012-2019), European Market Infrastructure Regulation (EMIR), Prospectus Law (2012-2016), Transparency Law, and Capital Adequacy Requirements.

The table below demonstrates all chapters covered within the CySEC Advanced syllabus along with an estimation of the number of questions per chapter on the exam. Please note that the indicated number of questions can change by more or less than 2 to ensure a consistent level of difficulty.

Chapter	Questions
Chapter 1 – Investment Services Law 2017: Scope / Powers / Offences	4
Chapter 2 – Cypriot Investment Firms (CIFs)	8
Chapter 3 – Cypriot Investment Firms (CIFs) and Banks	8
Chapter 4 – Open-Ended Undertakings for Collective Investment (UCI) Laws (2012-2019)	6
Chapter 5 – Alternative Investments	6
Chapter 6 – The Business of Credit Institutions Laws of 1997-2016	2
Chapter 7 – The Prevention and Suppression of Money Laundering and Terrorist Financing Laws	5
Chapter 8 – Markets in Financial Instruments Regulation (MiFIR)	4
Chapter 9 – Capital Adequacy Requirements	8
Chapter 10 – European Market Infrastructure Regulation (EMIR)	4
Chapter 11 – Recovery and Resolution Laws	5
Chapter 12 – Prospectus Law	2
Chapter 13 – Transparency Laws	3
Chapter 14 – Insider Dealing and Market Manipulation Regulation (2016)	5
Total	70

The CySEC Advanced certification is aimed at professionals that hold key positions at Cyprus Investment Firms, AIF & AIFM, and CASP; executive and non-executive directors are required to hold the certification.

Cyprus Bar Association (CBA) and Institute of Certified Public Accountants of Cyprus (ICPAC) members such as lawyers and accountants offering their services to CySEC regulated entities could also benefit by becoming CySEC Advanced certification holders. Since the CySEC Advanced certification qualifies professionals as competent to provide sound and relevant advice, CBA and ICPAC members can be in a better position to advise their clients.

Successful CySEC Advanced exam candidates are qualified to offer the below investment services:

• Dealing on own account
• Portfolio management
• Offer investment advice
• Underwriting and placing of financial instruments

And perform the following services at an Undertakings for the Collective Investment in Transferable Securities (UCITS) company or a Variable Capital Investment Company (VCIC):

• UCITS investment management
• Investment management
• Offer investment advice

Alternative Investment Funds can hire a CySEC Advanced certification holder to help with the:

• Marketing of an Alternative Investment Fund
• Management of portfolio investments
• Services stated within 6(5)(a) and 6(b) of the AIFM Law and 6(1)(a) of the AIF Law

In addition, the CySEC Advanced certification is also recommended for individuals who are final-year university students or recent graduates of higher education and are interested in joining the financial and investment services sectors. Furthermore, this exam is considered by CySEC a perquisite for all professionals aiming to be appointed in the position of a Compliance Officer in a CySEC regulated entity.

CySEC Basic Certification

The CySEC Basic certification consists of 8 chapters and, like the CySEC Advanced certification, includes key Cypriot and EU regulations such as MiFID II, AML/CFT, and Law 87/2017, which governs Cyprus Investment Firms. The primary distinction between the Basic and Advanced certifications lies in the breadth of the material covered in the syllabus. However, the level of difficulty for the exam questions in both certifications remains the same.

In the table below, we highlight the topics covered in the CySEC Basic exam as well as an indication of approximately how many questions each chapter contains.

Chapter	Questions
Chapter 1 – Investment Services Law 2017: Scope / Powers / Offences	4
Chapter 2 – Cypriot Investment Firms (CIFs)	12
Chapter 3 – Cypriot Investment Firms (CIFs) and Banks	8
Chapter 4 – Markets in Financial Instruments Regulation (2014) (MiFIR)	5
Chapter 5 – Insider Dealing and Market Manipulation Regulation (2016)	8
Chapter 6 – Open-Ended Undertakings for Collective Investment (UCI) Laws (2012-2019)	5
Chapter 7 – Alternative Investments	6
Chapter 8 – The Prevention and Suppression of Money Laundering and Terrorist Financing Laws of 2007-2017	2
Total	50

Candidates taking the exam have 60 minutes to answer 50 multiple-choice questions, with a passing score of 70%, which equates to correctly answering 35 out of the 50 questions.

The CySEC Basic certification is intended for professionals involved in providing investment services at CySEC-regulated entities, such as the reception, transmission, and execution of client orders. Additionally, CySEC Basic certification holders are qualified to offer marketing services for Collective Investment Schemes, including UCITS Management Companies or VCIC organizations.

CySEC AML Certification

The curriculum for the CySEC AML examination has been revised at the end of July 2024 to include a chapter on CASP, with the first exam with the new syllabus to be scheduled for the 3rd of October 2024. The revised examinations include the most important amendments and/or additions to the framework. The exams with the current workbook and syllabus will be held until the 26th of September 2024.

The CySEC AML certification covers 9 chapters dedicated to Anti-Money Laundering. Specifically, the CySEC exam is composed of the:

• Prevention and Suppression of Money Laundering and Terrorist Financing EU Laws
• CySEC directives for the Prevention and Suppression of Money Laundering
• European Supervisory Authorities Risk Factor Guidelines
• Abbreviations and definitions professionals need to know

The table below presents the syllabus for the CySEC AML exam.

Chapter
Chapter 1	Introductory provisions
Chapter 2	Understanding Money Laundering, Terrorist Financing and Sanctions
Chapter 3	Legal and Regulatory Requirements
Chapter 4	The AML Compliance Culture
Chapter 5	Assessing and Managing Risks
Chapter 6	Know Your Customer (KYC) and Customer Due Diligence (CDD)
Chapter 7	Transaction Monitoring & Suspicious Reporting
Chapter 8	Crypto Asset Service Providers
Chapter 9	Abbreviations & Definitions

Candidates taking the CySEC AML exam have 60 minutes to answer 40 multiple-choice questions, with a passing score of 70%, meaning they must correctly answer at least 28 out of 40 questions. Notably, some questions may have more than one correct answer.

Unlike the CySEC Advanced and Basic exams, CySEC does not specify the number of questions per chapter for the AML exam. However, based on experience, the majority of questions typically come from chapters 2, 5, 6, and 7.

Introduced in 2020, the CySEC AML certification is designed for professionals who are either appointed or aspiring to be appointed as AML Compliance Officers. The exam aims to strengthen regulatory measures for preventing money laundering and terrorist financing (ML/TF) across the financial system.

CySEC-regulated entities, including CIF, CASP and institutions regulated by the Central Bank of Cyprus (CBC), such as Payment Institutions (PI), Electronic Money Institutions (EMI), and banks, are required to employ a dedicated AML Compliance Officer.

How to register for the CySEC exams

As previously mentioned, the CySEC exams cater to professionals working in and around the investment services sector in Cyprus. Thus, professionals who wish to register for a CySEC exam must complete the online application form for the exam of their choosing. If you require help during the exam registration process, please visit this document.

Candidates who successfully pass their CySEC exam will be contacted by CySEC for the completion and submission of the registration form regarding their induction into the CySEC Public Register for Certified Persons and the AML Compliance Officers Register.

Please note there is no prerequisite to sit any of the CySEC exams. For example, an individual can take the CySEC Advanced exam without having to pass the CySEC Basic exam or without having previous experience in the investment services industry.

Contact us at info@salvusfunds.com if you require support with your CySEC exam preparation or are interested in our Most Complete™ courses with IforPE.

3. CPD Requirements for CySEC Certified Persons

CySEC, along with other professional bodies like the Institute of Certified Public Accountants of Cyprus and the Cyprus Bar Association, mandates that their certified members complete a minimum number of Continuous Professional Development (CPD) units annually. CPD involves ongoing learning and skill development to maintain best practices within a profession. The importance of regularly completing professional training lies in staying informed and competent with the latest regulatory updates and industry developments.

• CySEC Advanced Certification: 15 CPD units annually
• CySEC Basic Certification: 10 CPD units annually
• CySEC AML Certification: 10 CPD units annually

Professionals holding both the Advanced and AML certifications need to complete 20 units annually, while those with the Basic and AML certifications need 15 units.

It’s crucial for Certified Persons to track and record their CPD activities to remain on the CySEC Public Register and the AML Compliance Officers Register. Newly certified professionals are exempt from CPD during their first year.

How SALVUS Can Help

The SALVUS Education team, in collaboration with the Institute for Professional Excellence (IforPE), offers the most comprehensive CySEC certification preparation courses. Our online, self-paced courses include:

• Recorded workshops
• Self-study materials
• Section-end quizzes
• Mock exams simulating the real CySEC exams
• 1-on-1 support by the Education team
• CPD certification on corresponding units

Our Risk & Compliance Director and the instructor for these courses, Evdokia Pitsillidou, ensures our courses reflect the latest regulatory updates.

Additionally, our CySEC certification preparation courses adhere to the needs of modern professionals and are ideal for those who wish to study at their own time and pace. We offer the following online courses:

• The Most Complete™ CySEC Advanced certification course
• The Most Complete™ CySEC Basic certification course
• The Most Complete™ CySEC AML certification course
• The Most Complete™ CySEC AML certification course (new syllabus)

Please contact us at info@salvusfunds.com if you require support with your CySEC exam preparation or are interested in our Most Complete™ courses with IforPE.

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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.