Chapter 1: Scope/ Powers/ Offences

Question 1

Name the entities which law 87(1)/2017 applies to:

Answer 1

• Cyprus Investment Firms (CIFs)
• Market operators
• Data Reporting Service Providers (DRSPs)
• Third-country firms providing investment advice services or activities through the establishment of a branch in the Republic.

Question 2

Name one entity which is exempted from Law 87(1)/2017:

Answer 2

• Insurance Undertaking
• ‘Agenti di cambio’ (Italian Stockbrokers)
• Danish and Finnish pension funds associates.

Question 3

Who is responsible to maintain a public register for persons who act in Cyprus on behalf of a third-country firm?

Answer 3

CySEC

Question 4

Where can CySEC transmit confidential information on the understanding that it is to be treated confidentially?

Answer 4

• ESMA
• European Systemic Risk Board (ESRB)
• Central Bank of Cyprus (CBC)
• Other central banks of member states
• European central bank

Question 5

What should CySEC do in case it has reasons to believe that an entity which is not subject to its supervision is varying out an act contrary to EC regulation in another member state?

Answer 5

CySEC shall notify the competent authority in that member state as well as ESMA, in as much detail as possible.

Question 6

Which body has primary responsibility for maintaining a public register of persons acting on behalf of investment firms established in another member state but operating Cyprus?

Answer 6

CySEC

Question 7

When may CySEC refuse to provide information or cooperate with an investigation?

Answer 7

When such investigation might adversely affect the security sovereignty or public order in the Republic.

Question 8

What is the penalty for providing false information to Cysec?

Answer 8

Any person who fails to comply with this is guilty of a criminal offence. In case of conviction, this is punishable by imprisonment of up to five years and/or fine up to €700,000

Question 9

What will CySEC do if they receive a request regarding an inspection or investigation?

Answer 9

• Carry out the inspection or investigation or,
• Allow the requesting authority to do it, or,
• Allow auditors or experts to do it

Question 10

Name the powers of the CBC:

Answer 10

• Request freezing and/or the sequestration of assets
• Temporarily prohibit the exercise of professional activity
• Allow auditors or experts to carry out verifications or investigation

Question 11

Who is responsible for the sound and prudent management of a CIF?

Answer 11

CySEC