ARTICLE
9 February 2018

Consultation On Proposed New Prudential Framework For Investment Firms

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Elias Neocleous & Co LLC

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Elias Neocleous & Co LLC is the largest law firm in Cyprus and a leading firm in the South-East Mediterranean region, with a network of offices across Cyprus (Limassol, Nicosia, Paphos), Belgium (Brussels), Czech Republic (Prague), Romania (Budapest) and Ukraine (Kiev). A dynamic team of lawyers and legal experts deliver strategic legal solutions to clients operating in key industries across Europe, Asia, the Middle East, India, USA, South America, and China. The firm is renowned for its expertise and jurisdictional knowledge across a broad spectrum of practice areas, spanning all major transactional and market disciplines, while also managing the largest and most challenging cross-border assignments. It is a premier practice of choice for leading Cypriot banks and financial institutions, preeminent foreign commercial and development banks, multinational corporations, global technology firms, international law firms, private equity funds, credit agencies, and asset managers.
The Cyprus Securities and Exchange Commission ("CySEC") has issued a notification to entities it regulates and to participants in the market in general of the consultation process ...
Cyprus Wealth Management

The Cyprus Securities and Exchange Commission ("CySEC") has issued a notification to entities it regulates and to participants in the market in general of the consultation process regarding a proposed amendment of the EU prudential rules for investment firms.

Under a proposal adopted by the European Commission in December 2017 for a regulation and a directive to amend the current rules, only the largest and most systemic investment firms would remain under the Capital Requirements Directive/Capital Requirements Regulation prudential framework, which was designed for credit institutions, and is regarded as complex and burdensome for non-bank firms providing investment services because it does not specifically address their business specific risks. The vast majority of investment firms would be subject to a new bespoke regime with simpler, more appropriate prudential requirements.

Comments on the proposed legislation may be made via the European Commission's website until 8 March 2018.

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