On Apr. 11, CYP SEC issued circular on website/marketing obligations.
CYP SEC issued circular on obligations and compliance of Cyprus Investment Fund Managers (CyIFMs) with regard to their websites and marketing communications.
CYP SEC reminds CyIFMs of their obligations regarding website compliance, as inconsistencies have been observed in website content, and inadequate disclosures.
In addition to observed deviations from the applicable regulatory framework.
Circular sets out CYP SEC's expectations and additional compliance measures to enhance transparency and investor protection, which CyIFMs need to observe.
As such, CyIFMs need to maintain a website, ensuring that its content aligns with marketing communications requirements, and disclose certain documents/information.
Such disclosure need to be accessible to investors through CyIFMs' websites.
Category of Fund Managers
CYP SEC sets out regulatory compliance on website/disclosure obligations for Cyprus UCITS management companies and self-managed Cyprus UCITS (CyUCITS MCs).
Also, criteria for regulatory obligations are set out by CYP SEC for Cyprus alternative investment fund managers and self-managed CyprusAIFs (CyAIFMs).
Sub threshold Cyprus alternative investment fund managers and self-managed sub threshold Cyprus AIFs (sub threshold CyAIFMs), have obligations set out by CYP SEC.
Actions Required by CyIFMs
CYP SEC advises all CyIFMs to conduct website maintenance, and ensure the proper upkeep of an official website (owned and operated by them), and compliance.
Includes an immediate review to ensure website content aligns with the regulatory requirements, such as Reg 2019/1156 on facilitating cross-border distribution.
Specifically, distribution of collective investment undertakings (CIUs), and also requirements of ESMA guidelines on marketing communications (ESMA34-45-1272).
SFDR Reg 2019/2088 on sustainable finance disclosures is applicable to all CyIFMs.
Reviews by CyIFMs must also include all required disclosure are up-to-date/correct.
CyIFMs must ensure that documents, such as prospectuses, and packaged retail and insurance-based investment products (PRIIPs) are directly available on their websites.
Also, key information documents (KID) must be directly available on CyIFMs' websites without requiring users to sign up or request access for any of these documents.
If a fund maintains a separate website, it is still the CyIFM's responsibility to ensure compliance and the CyIFM must have full administrative access.
An internal review process for website content and marketing communications must be conducted by CyIFMs to ensure they continue to adhere to regulatory requirements.
Additional Measures of Compliance
CyIFMs must inform CYP SEC of any new or modified website (beyond those initially reported) via the funds portal within 10 days from the establishment or change.
CYP SEC will conduct periodic reviews to ensure compliance obligations are met.
Effectiveness
Implement all required actions as set out by CYP SEC by May 31, 2025.
