12 free CySEC Advanced Chapter 6 flashcards. Tap a card to flip, or use the arrow keys to move through the deck.
Card 1 of 12Supervision
1 / 12
Tap the card to flip · use ← → arrow keys to navigate
All 12 cards in this deck
Supervision
Which authority prudentially supervises authorised credit institutions (ACIs) in Cyprus?
The Central Bank of Cyprus (CBC). CySEC supervises investment firms (CIFs) — the two roles cover different types of entity.
How does the CBC determine the intensity of its supervisory reviews, and how often?
By the ACI's size, systemic importance, nature, scale and complexity (a risk-based approach). Reviews are at least annual and must include interest-rate risk from the non-trading (banking) book.
What information is off-limits to the CBC during an ACI inspection?
The personal correspondence of employees and associates. The CBC's broad rights cover business books, records, accounts and documents — but not private communications.
Acquisitions & mergers
What must an ACI do before disposing of its business by sale or merger?
Obtain prior written approval from the CBC. Shareholder votes or public announcements do not substitute for this regulatory approval.
Which shareholding thresholds trigger a mandatory CBC notification for acquiring an interest in an ACI?
When voting rights reach or exceed 20%, 30% or 50%, or where the ACI would become a subsidiary. The acquirer must notify the CBC in writing and obtain its approval.
How long is the CBC's assessment period for a proposed ACI acquisition, and how may it pause?
60 working days from written acknowledgement of complete information. The CBC may request further information up to day 50, interrupting the clock for a maximum of 20 working days (30 for an unsupervised non-EU acquirer).
What happens if the CBC does not act on a proposed ACI acquisition within the assessment period?
Silence equals consent — the acquisition is deemed approved. If the CBC opposes, it must inform the acquirer within two working days of the decision and before the period ends.
Capital & reporting
What is the minimum capital of an ACI incorporated in Cyprus?
€5 million — a floor, not a ceiling. The CBC may require an individual ACI to hold more own funds based on its own assessment.
What are the ACI deadlines for filing audited accounts with the CBC versus publishing them?
Audited annual accounts must be submitted to the CBC within four months of year end; the balance sheet, P&L and auditor's report must be published within six months.
How often must an ACI report its assets and liabilities to the CBC?
A certified statement of assets and liabilities must be submitted within 15 days of each month end, giving the CBC near-real-time visibility.
Intervention powers
What must happen when the CBC demands that an ACI increase its share capital?
The ACI must convene an extraordinary general meeting of shareholders (first, to authorise the increase), submit a recovery plan with a timetable to the CBC, and inform the Registrar of Companies. Failure to convene the EGM can cost each responsible board member a fine of up to €100,000.
What triggers system-wide CBC special measures, and what governance action can the CBC take on solvency doubts?
If an ACI's economic value declines by more than 20% of own capital from a sudden interest-rate change, the CBC applies special measures to ALL Republic-incorporated ACIs. Where an ACI may be unable to meet its obligations, the CBC may replace both the CEO and the Chairman.