We researched and summarised for you, all recent regulatory updates from
We support our clients and associates by providing a comprehensive page with the recent circulars, directives, and guidance issued by the following Regulators:
Cyprus Securities and Exchange Commission ("CySEC")- Central
Bank of Cyprus ("CBC") European Central Bank ("ECB ")European Banking Authority ("EBA")European Securities and Markets Authority ("ESMA")
30/11/22: C537 -New Form CBRT-CIF
CySEC issued a circular on
CBRT-CIF NEW FORM
13/12/22: C538 - Guidance in relation to the requirement to raise capital from investors within a specified period.
The CySEC reminds AIFMs regarding the raising of capital from investors (Circular 321) within a specific time period. In addition, as a result of some observations identified after relevant reviews performed by CySEC over the period from 2019 to 2021 on Funds following the enforcement of the Law 124(I)/2018 ('the AIF Law'), CySEC aims with this circular to give AIFMs an indication regarding the implementation of articles 14(1)(a), 129(1)(a) and 136 of the Law.
GUIDANCE NOTE
The circular is issued by CySEC to inform all CIFs about the following:
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Information requested by CySEC regarding Quarterly Statistics.
- Deadline for the Submission of Form (via TRS by 15:00, Tuesday, 31 January 2023).
- General comments for the preparation and completion of the Form.
- Method of creating, signing, and submitting the Form to the CySEC via TRS.
CIFS QUARTERLY STATISTICS (FORM-QST-CIF)
Central
1/12/2022: Decision of the
The CBC, following a consultation with the
The new buffer rate will be effective from
CBC COUNTERCYCLICAL BUFFER RATE DECISION
2/12/2022: Statistics on Interest Rates applied by Monetary Financial Institutions
The CBC released the statistics on interest rates applied by monetary financial institutions in
These statistics are included in the
The main developments in interest rates on new deposit and loan contracts, including contracts which were renegotiated, are summarised as follows:
Deposit Rates
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The interest rate on deposits from households with an agreed maturity of up to one year recorded an increase to 0,19% (0,11% in the previous month).
- The corresponding interest rate on deposits from non-financial corporations registered an increase to 0,47%, compared with -0,09% in the previous month.
- The interest rate on loans for house purchase decreased to 2,93%, compared with 3,06% in the previous month.
- The interest rate on loans to non-financial corporations for amounts up to €1 million increased to 4,17%, compared with 4,13% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million registered a decrease to 3,43%, compared with 3,69% in the previous month.
- New loans for house purchase recorded a decrease to €72,7 million, compared with €102,9 million in the previous month.
- New loans to non-financial corporations for amounts up to €1 million dropped to €42,7 million, compared with €54,1 million in the previous month.
- New loans to non-financial corporations for amounts over €1 million registered a decrease to €102,6 million, compared with €295,9 million in the previous month.
- The proposed NPL transaction data templates are built on previous voluntary templates and consider the experience of market participants from the sell- and buy-side and other stakeholders.
- The NPL transaction data templates are the linchpin for numerous initiatives under the
December 2020 European Commission's action plan for NPL in the aftermath of the COVID-19 pandemic. - if it is likely that the financial difficulties of one natural or legal person would spread to other(s) impacting full and timely repayment of liabilities.
- in case-control and economic dependencies co-exist within group of connected clients in such a way that all relevant natural and/or legal persons constitute a single risk.
Lending Rates
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The interest rate on consumer credit decreased to 3,57%, compared with 3,59% in the previous month.
Amounts of new loans
Total new loans recorded a decrease to €240,3 million in
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New loans for consumption decreased to €15,1 million, compared with €15,6 million in the previous month.
MORE INFORMATION ON THE STATISTICS
20/12/22:
In order to encourage, promote and support domestic financial innovation, the CBC announces the operation of an Innovation Hub.
The Innovation Hub aims to become an official platform for communication between the Supervisory/Regulatory Authority and businesses or even start-ups active in
The operation of the Innovation Hub simultaneously enhances the knowledge of the CBC for the ex-ante regulation and prudential supervision of new and innovative financial activities, as well as the early identification of risks that may affect companies and the financial system of the country.
INNOVATION HUB INFORMATION
15/12/2022: Monetary Policy Decisions
From the beginning of
Asset purchase programme (APP) and pandemic emergency purchase programme (PEPP)
As concerns the PEPP, the
MONETARY POLICY DECISIONS
13/12/22: The EBA publishes its roadmap on sustainable finance
The roadmap explains the EBA's sequenced and comprehensive approach over the next three years to integrate ESG risk considerations in the banking framework and support the EU's efforts to achieve the transition to a more sustainable economy.
Numerous legislative acts and initiatives allocate to the EBA new mandates and tasks in the area of sustainable finance and ESG risks. Most of these mandates and tasks are closely linked to the EBA's broader objective of contributing to the stability, resilience, and orderly functioning of the financial system. These mandates and tasks cover the three pillars of the banking framework as well as other areas related to ESG.
ROADMAP ON SUSTAINABLE FINANCE - ANNOUNCEMENT
14/12/2022: EBA publishes its first thematic review on the transparency and level of fees and charges for retail banking products in the EU, observing that significant detriment still arises for consumers
Overall, the review finds that fees and charges vary greatly in terms of level and type not only across the
More specifically, the review finds that national legal frameworks are mostly subject to the general principle of freedom of contract. Despite the improvements in consumer protection brought about by several EU sectoral directives introduced in the past decade to regulate the banking retail products, market practices for fees and charges are causing significant detriment to consumers.
The exception of payment accounts, the insufficient harmonisation, and standardisation of fees across EU Member States may disadvantage consumers when comparing the costs of financial institutions' products and services.
FIRST THEMATIC REVIEW - ANNOUNCEMENT
16/12/22: EBA standardises information requirements to support sales and transfers of non-performing loans
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The EBA introduces information standardisation to increase the efficiency of secondary markets for sales of non-performing loans (NPL) and to reduce entry barriers for smaller banks and smaller investors.
The draft ITS is built around the templates to be used for the provision of loan-by-loan information for the sales or transfers of NPL portfolios. The templates cover information regarding counterparties related to the loan, contractual characteristics of the loan itself, any collateral and guarantee provided, any legal procedures and enforcement procedures in place, and the historical collection of loan repayment.
The NPL transaction data templates are also complemented by a data glossary and the instructions for filling in the templates.
The draft ITS is based on strong proportionality arrangements, focusing on the sales of portfolios of NPL and setting different information requirements depending on the nature of the borrowers and of the loans included in the portfolios to be sold, by specifying mandatory data fields. Proportionality is further reinforced by allowing all data fields to be treated as not mandatory for certain types of transactions.
These draft ITS have been submitted to the
EBA STANDARDISES INFORMATION REQUIREMENTS
19/12/22: EBA updates list of CET1 instruments
Since the publication of the last updated list of CET1 capital instruments on
Following the Joint Committee EEA Decision adopting the CRR1 that entered into force on
Furthermore, a few instruments no longer used by institutions have been deleted in order to reflect only instruments used in the EU or EEA on the list.
Finally, a few minor amendments have been introduced in the column referring to the national provisions in order to mirror legislative changes or to provide further clarifications.
For the purpose of correctly reading this list, the EBA recommends taking into account the caveats described in the intro section of the list.
EBA UPDATES LIST OF CET1 INSTRUMENTS
21/12/2022: EBA publishes final technical standards on the identification of a group of connected clients
In particular, the following conditions lead to the identification of two or more legal persons as connected:
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if they are part of the same consolidated financial statements, even in the absence of exposures towards the natural or legal person that controls the group. These draft RTS also provide a non-exhaustive list of circumstances of control criteria and control indicators to assess if there is a parent-subsidiary-similar relationship among natural and/or legal persons.
EBA FINAL TECHNICAL IDENTIFICATION STANDARDS OF A GROUP OF CONNECTED CLIENTS
No new announcements/circulars/directives for this month
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.
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