The Cyprus Securities and Exchange Commission ("CYSEC") has recently issued Directive DI144-2007-11 of 2011 on "Supplementary Supervision of Investment Firms in a Financial Conglomerate".
The Directive sets out the provisions for the supplementary supervision of an investment firm which has been granted an authorisation by CYSEC and which is part of a financial conglomerate. The Directive sets out the parameters which CYSEC uses to identify groups to which the Directive applies and the procedures for appointing a supervisory authority to coordinate their supervision. It also sets out minimum requirements as regards capital adequacy, risk diversification, intra-group transactions and internal control procedures. It explains the role and responsibilities of the supervisory coordinator and the procedures for exchange of information and coordination of actions between competent authorities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.