Cyprus
Securities and Exchange Commission (CySEC) broke its
six-month consultation silence during the Christmas period, by proposing new
rules that would significantly expand the acceptance of English-language
prospectuses.

How will
this change affect the operational efficiency and international competitiveness
of Cyprus-based investment firms (CIFs), particularly in the FX/CFD sector
where English is predominantly used in client communications?

CySEC Moves to Accept
English Language Prospectuses in Broader Range of Cases

Despite the
holiday lull in markets and the industry, the Cypriot regulator has been
active, using the brief window between Christmas and the New Year’s break to
release a new consultation paper. This
marks the first in six months and only the second this year where the
regulator has sought input from industry representatives regarding proposed
changes.

These
changes, though seemingly technical at first glance, could hold significant
implications—and potential benefits—for the predominantly English-speaking
financial sector.

The
proposed changes, outlined
on 27 December, would allow companies to submit prospectuses in English
across a broader range of cases, while maintaining investor protection through
mandatory Greek language summaries. This marks a departure from the current
policy where Greek is the default language, with English accepted only in
limited circumstances.

Δελτίο Τύπου – Η ΕΚΚ αυξάνει τις περιπτώσεις σύνταξης ενημερωτικού δελτίου στην αγγλική γλώσσαhttps://t.co/Dl93EjVU6B

Press Release – CySEC broadens the cases where drawing up a prospectus in English is acceptedhttps://t.co/jjg2ERE34T

— CySEC – Cyprus Securities and Exchange Commission (@CySEC_official) December 27, 2024

“CySEC’s
proposal to amend its approach on the accepted languages for a Prospectus,
whilst requiring that the summary thereof, which contains the essential
information to take an investment decision, is also made available in Greek,
aims at ensuring investor protection in a proportionate manner,” the regulator commented
in official press release issued last week.

Until now,
the approach has been the opposite: Greek served as the primary language, with
only key documents or summaries of decisions published in English. Detailed
information, however, was available exclusively in the state’s official
language.

The
proposed changes could particularly impact Cyprus Investment Firms (CIFs),
including the substantial number of FX and CFD brokers operating under CySEC
supervision. The new language requirements might streamline their documentation
processes, especially for those serving an international client base.

Market
participants have until January 20, 2025, to submit their feedback to CySEC’s
policy department.

Crack Down on Weapons
Financing, New Website and Crypto Rules

CySEC has
been active in recent weeks, introducing several initiatives aimed at enhancing
regulatory compliance and operational transparency. One key development is the
release of detailed guidance requiring brokers, cryptocurrency platforms, and
financial firms to
implement stringent measures against weapons proliferation financing (PF).

The
framework mandates regulated entities, including FX/CFD brokers and crypto
platforms, to establish robust screening systems and conduct enhanced due
diligence to prevent the use of trading operations for financing weapons of
mass destruction.

In a
parallel effort, CySEC
launched a new website designed to improve the experience for regulated
firms, investors, and the general public. According to the regulator, the
updated platform represents a significant advancement in accessibility,
transparency, and user convenience.

Earlier, in
November, CySEC
began accepting applications for Crypto Asset Service Provider (CASP) licenses
from entities and individuals seeking preliminary assessment under the upcoming
Markets in Crypto-Assets Regulation (MiCA). This initiative aligns with the
regulator’s preparation for MiCA’s full implementation across the European
Economic Area, which took effect on December 30, 2024.