A CIF providing investment services in a host member state under the freedom to provide services must notify CySEC of its intention to do so in accordance with article 79 of the Investment Services and Activities and Regulated Markets Law of 2007, as amended (the Investment Services Law). Article 79 stipulates that a CIF may not start to provide services or perform activities in the host member state until it receives notification from CySEC that the competent authority of the host member state has been informed of its intention to provide services there.
A CIF wishing to offer any services other than those specified in its notification to CySEC must first give CySEC one month's written notice of the intended change.
In the event of failure to comply, CySEC may impose sanctions including the imposition of an administrative fine or withdrawal or suspension of the authorisation. In addition, the competent authorities of host member states have powers under article 62 of Directive 2004/39/EC to prevent the firm concerned from initiating any further transactions within their territory.