The Cyprus Securities and Exchange Commission (CySEC) has announced a new accelerated procedure in order to expedite the examination and determination of pending applications for authorisation.
The accelerated procedure is available to:
- all entities that have pending applications for authorisation:
- as Cyprus investment firms under article 21 of the Investment Services and Activities and Regulated Markets Law of 2007;
- as providers of administrative services under article 10 of the Administrative Service Providers Law of 2012 (but not to existing service providers applying under the grandfathering provisions of article 11 of the law);
- as undertakings for collective investments under articles 8 and 111 of the Undertakings for Collective Investments Law of 2012;
- as alternative investment fund managers under article 7 of the Alternative Investment Fund Managers Law of 2013; and,
- as alternative investment funds under articles 12 and 115 of the Alternative Investment Funds Law of 2014; and,
- existing international collective investment schemes that have applied to convert into alternative investment funds with a limited number of persons in accordance with article 120 of the Alternative Investment Funds Law of 2014.
Any applicant whose application has not yet been assigned for examination may participate.
Participants in the scheme will be required to pay a supplementary fee of between €800 ($870) and €1,700, together with a further amount for any additional investment compartments. These fees will be used to finance overtime payments to employees of CySEC who will examine the applications outside their normal working hours.
Applicants must first register their interest in the scheme. Applicants subsequently will be contacted by CySEC when one of its employees becomes available to start examining the application. Once the applicant has confirmed that it wishes to proceed and has paid the supplementary fee, CySEC aims to complete its preliminary assessment of the application within five days. If the application does not contain all the necessary information required by the relevant law and CySEC directives, it will not be examined and the application file will be returned to the applicant, together with the supplementary fee. If the application is substantially complete, CySEC will write to the applicant requesting any clarifications or further information or documents that it requires and the applicant will have two weeks to provide these. Following their submission, CySEC will complete its second-stage evaluation within two weeks. If it requires any final clarifications it will write to the applicant, who should provide them within one week. No later than two weeks after receiving any final clarifications CySEC will complete its examination, submit its recommendation to its board and notify the applicant of the board's decision. The total target time from payment of the supplementary fee to determination of the application is eight weeks.
Applications from entities that do not wish to participate in the scheme will continue to be processed as normal.
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