Updates

The European Securities and Markets Authority ("ESMA"), the EU’s financial markets regulator and supervisor, issued a Public Statement providing market participants with clarity concerning their reporting requirements under Relevant Technical Standards 28 ("RTS28"), pending full application of the new rules under MiFID II.

The European Banking Authority ("EBA") published a technical package for version 3.4 of its reporting framework.

We would like to inform you that the Tax Commissioner, on 1 February 2024, confirms via a letter to interested parties, the intention to increase the threshold per category of transaction which will be subject to Local File documentation requirements.

The European Banking Authority ("EBA") launched an industry survey to receive input from credit institutions on their methodologies to classify exposures to environmental, social and governance ("ESG") risks, as well as on the accessibility and availability of ESG data for this purpose.

We would like to inform you that following the enactment of Council Directive (EU) 2021/514 (DAC7), operators of both EU and non-EU based digital platforms engaging in “Relevant Activities” have the obligation to collect and report certain information about the sellers that use their platforms.

The European Banking Authority ("EBA") published its heatmap following scrutiny of the interest rate risk in the banking book ("IRRBB") standards implementation in the EU.

The three European Supervisory Authorities (European Banking Authority ("EBA"), European Insurance and Occupational Pensions Authority ("EIOPA") and ESMA – the ESAs) published the first set of final draft technical standards under the Digital Operational Resilience Act ("DORA") aimed at enhancing the digital operational resilience of the EU financial sector by strengthening financial entities’ Information and Communication Technology ("ICT") and third-party risk management and incident reporting frameworks.

We would like to inform you that as per the Decree No. 416/2023 published in the official Gazette of the Republic, the public interest rate imposed on any overdue or refundable taxes has been increased from 2.25% per annum to 5.00% per annum. The new rate of 5.00% is applicable as from 1 January 2024.

EBA published amendments to the reporting requirements for market risk. As the implementation of the Fundamental Review of the Trading Book ("FRTB") in the EU approaches, the EBA revised the information to be reported on the own funds requirements under the alternative approaches, and adds reporting on reclassifications of instrument between the regulatory books.

We would like to inform you that the Cyprus Parliament approved an amendment to the Special Defence Contribution (“SDC”) Law reducing the SDC rate for passive interest earned by Cyprus tax residents (Individuals and Companies) from 30% to 17%.

The European Insurance and Occupational Pensions Authority ("EIOPA") published the results of a Europe-wide comparative study on non-life underwriting risk in internal models.

EBA and the European Securities and Markets Authority ("ESMA") published a Consultation Paper on two draft Joint Guidelines covering suitability assessment of members of the management body, and suitability of shareholders and members with qualifying holdings of issuers of asset-referenced tokens ("ARTs") and of crypto-asset service provider ("CASPs"). The guidance will provide clarity and harmonisation with respect to the criteria to assess the suitability of the management body, the shareholders and members with qualifying holdings, thus reducing the risk of arbitrage in the application of the rules.

The Financial Conduct Authority ("FCA") has written to investment platforms and self-invested personal pension ("SIPP") operators setting out its concerns on the way they deal with any interest earned on customers’ cash balances. The amount of interest earned by some firms has increased as rates have risen.

We would like to remind you of the deemed dividend distribution (DDD) provisions of the Special Contribution for the Defence Law (SDC) that apply on the 31st of December 2023, and for which there is a reporting deadline on 31st of January 2024.

EBA published a Consultation Paper on draft regulatory technical standards ("RTS") specifying the requirements for policies and procedures on conflicts of interest for issuers of asset-referenced tokens ("ARTs") under the Markets in Crypto-Assets Regulation ("MiCAR").

We would like to inform you that on the 28th of November 2023, the Cyprus Tax Department (CTD) issued Circular 11/2023 (“the Circular”) providing clarifications in relation to the imposition of the 5% reduced VAT rate on the acquisition/construction of a private residence further to the recent amendment in the Cyprus VAT Law N95(I)/2000 (“the Law").

EBA published its environmental statement in the context of the 2023 United Nations Climate Change Conference ("COP28").

The European Banking Authority ("EBA") published its final draft Regulatory Technical Standards ("RTS") on the assessment methodology under which competent authorities verify institutions’ compliance with the requirements applicable to their internal models under the Fundamental Review of the Trading Book ("FRTB") rules.

We would like to inform you that the deadline for the payment of the second temporary tax installment for the tax year 2023 is due on 31st of December 2023.

A review by the Financial Conduct Authority ("FCA") has found that while most Authorised Fund Managers ("AFMs") have made efforts to comply with the FCA’s expectations on the design, delivery, and disclosure of their Environmental, Social and Governance ("ESG") and sustainable funds, further improvement is needed.

We would like to remind you that the submission deadline for the following Countryby-Country (‘’CbC’’) reporting obligations is on 31st December 2023.

International Men's Day is a day dedicated to celebrating the contributions and achievements of men across the globe as well as a global awareness day for many issues that men face, including parental alienation, abuse, homelessness, suicide, and violence.

The European Banking Authority ("EBA") launched three consultations on draft Regulatory Technical Standards ("RTS") to specify the liquidity requirements of the reserve of assets, the highly liquid financial instruments in the reserve of assets and the minimum content of the liquidity management policy and procedures of relevant issuers of tokens.

The European Securities and Markets Authority ("ESMA"), the EU’s financial markets regulator and supervisor, has published the new quarterly liquidity assessment of bonds, the data for the quarterly systematic internaliser calculations for equity, equity-like instruments, bonds and for other non-equity instruments under MiFID II and MiFIR.

A change in legislation has brought cryptoasset promotions under our remit. From 8 October, we have been supervising firms against the new regime that is designed to give consumers the right information and risk warnings.

We would like to inform you that the Cyprus Tax Department has issued a Circular providing the following guidance on the tax treatment of income generated from properties rented out through online platforms, such as Airbnb or Booking, or through other means.

The EBA published the European Supervisory Examination Programme ("ESEP") for 2024, which identifies key topics for heightened supervisory attention across the European Union.

The EBA published a Report on the role of environmental and social risks in the prudential framework of credit institutions and investment firms. Taking a risk-based approach, the Report assesses how the current prudential framework captures environmental and social risks.

The European Securities and Markets Authority ("ESMA"), the EU’s financial markets regulator and supervisor, publishes a second consultation package under the Markets in Crypto-Assets Regulation ("MiCA"). Stakeholders are encouraged to provide their feedback to this consultation by 14 December 2023.

The three European Supervisory Authorities (EBA, European Insurance and Occupational Pensions Authority ("EIOPA") and ESMA – the ESAs) have published an indicative overview of information and communication technology ("ICT") third-party providers ("TTP") as part of their preparations for the Digital Operational Resilience Act ("DORA").