The Cyprus Securities and Exchange Commission Law [73(I)/2009, 5(I)/2012] was amended in order to clarify that the Securities and Exchange Commission (“The Commission”) shall be designated as the competent supervisory authority for the following issues, that derive from EU legal acts:
• short selling and certain aspects of credit default swaps;
• over-the-counter (OTC) derivatives, central counterparties and trade repositories;
• credit rating agencies;
• European venture capital funds;
• European social entrepreneurship funds.
Moreover, the Law provides that the competent Minister may issue a Notification designating the Commission as the competent authority for the effective implementation of any relevant EU Act.
The new legislation contains provisions enhancing the power of the Commission to impose an administrative fine to any person that acts in violation of any provision of the basic law, the Regulations issued by virtue of the Law or any relevant EU Acts. Furthermore, new Section 25A provides that any person carrying out activities under the supervision of the Commission shall undertake the obligation to provide guarantees and safeguards ensuring the protection of investors.
The amending Law also makes reference to EU Regulation 575/2013 on prudential requirements for credit institutions and investment firms. This Regulation lays down rules concerning general prudential requirements that supervised institutions must comply with in relation to the following items:
(a) own funds requirements relating to entirely quantifiable, uniform and standardised
elements of credit risk, market risk, operational risk and settlement risk;
(b) requirements limiting large exposures;
(c) liquidity requirements relating to entirely quantifiable, uniform and standardized
elements of liquidity risk;
(d) reporting requirements related to points (a), (b) and (c) and to leverage;
(e) public disclosure requirements.