The Cyprus Securities and Exchange Commission (CySEC) has issued a reminder to Cyprus Investment Firms (CIFs) regarding the stance of the Polish Financial Supervision Authority (UKNF) on referral and affiliate programmes.

UKNF Bans Individualized Client Acquisition

The UKNF's position, dated October 2023, prohibits clients of investment firms or unregulated intermediaries from engaging in individualized client acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term activities through such programmes.

CySEC noted in its web release that “the UKNF Position forbids clients of an investment firm or unregulated intermediaries from undertaking, under referral programmes or affiliate programmes, individualized actions to acquire clients or potential clients of investment services.”

CySEC Urges Compliance with UKNF

It also restricts the sharing of information on the scope of services provided by investment firms. Only the firms or their tied agents are permitted to carry out these actions.

The regulator further added: “Moreover, it forbids such persons from providing information about the scope of the investment services provided by the investment firm.”

CySEC has urged CIFs to take appropriate measures to ensure compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with the UKNF's position.

CySEC Adopts EBA Guidelines, Sets Crypto Deadline

The CySEC has adopted new European Banking Authority (EBA) guidelines, set to take effect in 2025, as reported by Finance Magnates. These guidelines clarify the application of the group capital test for investment firms under the Investment Firms Regulation.

The guidelines require investment firm groups to meet consolidated regulatory standards, similar to banking groups, covering capital adequacy, risk management, and governance.

CySEC has also announced a deadline for crypto-asset service providers operating in the European Economic Area. As of October 30, 2024, CySEC will no longer accept notifications from EEA firms for cross-border crypto services.

Firms that notify CySEC by this date will be allowed to operate under a transitional period until July 1, 2026, or until their MiCA authorization decision is made, ahead of the Markets in Crypto-Assets regulation, which will take effect on December 30, 2024.