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CySEC urges Brokers MiFID II license passport changes ahead of deadline
05/09/2017
CySEC urges Brokers MiFID II license passport changes ahead of deadline

The Cyprus Securities and Exchange Commission (CySEC) has issued a document in regards to the brokers MiFID II license passport changes. What do you need to know?

5 September, AtoZForex The key financial regulator of Cyprus, the Cyprus Securities and Exchange Commission (CySEC) has made a very important announcement. The watchdog has notified the public about the changes in regards to the Passporting Issues and the provision of investment services and activities by third country firms under MiFID II.

Brokers MiFID II license passport changes: To whom do they apply?

The MiFID II Directive will come into the force already in just some four months. The latest CySEC announcement is specifically important for all investment firms that:

  • Intend to operate an Organized Trading Facility
  • Carry out services in relation to the new financial instrument emission allowances
  • Will need to get a license to deal on own account, as a result of the scope of that being extended to include matched principal trading
  • Fall within the revised exemptions under MiFID II and Law 87 (Ι)/2017 (see part 5 of the Appendix of the Announcement issued on April 11, 2017)
  • Are currently passporting services in relation to derivatives of emission allowances and whose passport does not include C4 instruments, and is also applicable to firms that seek authorization for the first time under Law 87 (Ι)/2017 and who wish to passport investment services into the other Member States.

CySEC Brokers MiFID II license passport changes

The CySEC highlights the changes that are valid in regards to the Passporting Issues. The changes are also relevant for the provision of investment services and activities by third country firms. The new legislative framework is already integrated into the Cyprus national law.

Moreover, the legislation will apply from 3rd January 2018. The announcement by CySEC sets out the main changes that are relevant under MiFID II and MiFIR.

It also relates to the Regulations in regards to the passport notifications and tied agents process for investment firms in the European Union (EU). This includes Cyprus Investment Firms (CIFs).

The key changes cover the following areas:

  1. Cross border services passports from 3 January 2017;
  2. Cross border arrangements in relation to an MTF or an OTF;
  3. Establishment of a Branch;
  4. Provisions of investment services and activities by third country firms;

You can find the detailed document from CySEC here.

MIFID II passporting regime applies to a broader range of activities, services, and financial instruments. This is due to the increases in scope in MIFID II of services/activities and financial instruments.

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