Cyprus: Capital adequacy calculations changes

Author: | Published: 20 Oct 2016
Email a friend

Please enter a maximum of 5 recipients. Use ; to separate more than one email address.

Andreas Neocleous & Co


Neocleous House 195 Makarios III Avenue CY-3030 Limassol P.O. Box 50613 CY-3608 Limassol


+357 25 110000


+357 25 110001 Visit Website
Elias Neocleous

The Cyprus Securities and Exchange Commission has informed Cyprus Investment Firms it regulates of a change in the treatment of contributions to the Investors Compensation Fund (ICF) for the purposes of calculating capital adequacy. The Investment Services and Activities and Regulated Markets Law of 2007 to 2016 requires regulated investment firms to be members of the ICF and to contribute to it.

Up until now, for capital adequacy purposes, the ICF contribution has been categorised as an 'exposure to public sector entities' and risk weighted accordingly. With immediate effect, when calculating capital adequacy, firms must deduct the ICF contribution from common equity tier 1 capital and must no longer risk weight the relevant amount in their calculations of total risk exposure.

Elias Neocleous