Who is exempt from periodic reporting, and who must report payments to governments?

The duties to publish annual and half-yearly financial reports do not apply to the Republic or any other State, to the regional and local authorities of any State, or to public international bodies with at least one EU Member State as a member. Central banks are also exempt: the European Central Bank, the Central Bank of Cyprus and the national central banks of the other Member States. Since 8 April 2016 the list has also included the European Financial Stability Facility (EFSF) and any other mechanism set up to preserve the financial stability of the euro area by providing temporary financial assistance to euro-area Member States. For all these bodies the exemption covers shares and other securities alike.

The exam material lists 'the Republic or another member state' and their regional or local authorities. That was the Law's wording in 2007. Since 26 October 2012, when Law 143(I)/2012 deleted 'member', the Law has said any other State, as the Directive always did. Third-country sovereigns and their regional and local authorities are therefore exempt as well. Beyond this list, CySEC may exempt a third-country issuer from the Law's requirements where the law of its home country imposes equivalent ones; it must then inform ESMA.

An issuer is exempt from both reports if the only securities it has admitted to a regulated market are debt securities with a denomination of at least €100,000 each, or the equivalent in another currency when issued. For debt first admitted to an EU regulated market before 31 December 2010, €50,000 is enough, as long as that debt remains outstanding; later issues need €100,000. 'Only' matters: an issuer that also has shares, or lower-denomination debt, on a regulated market must publish both reports.

The same two denominations decide where debt holders' meetings may be held, as explained in What must issuers do so that shareholders and bondholders can exercise their rights?. The exemption covers only the annual and half-yearly reports: the Law's other duties, such as disclosing changes in holders' rights, still apply.

An issuer active in the extractive industry, that is exploring for, prospecting, discovering, developing or extracting minerals, oil, natural gas or other materials, or in the logging of primary forests, must prepare each year a report on the payments it makes to governments. It publishes the report as soon as possible and no later than six months after its financial year ends, and keeps it publicly available for at least 10 years. Payments are reported on a consolidated basis. A Cypriot company prepares the report under the thirteenth schedule of the Companies Law, an issuer from another Member State under its home law implementing Chapter 10 of the Accounting Directive, 2013/34/EU, and a third-country issuer under Chapter 10 itself.

The exam material places these payments in the annual and half-yearly accounts. Since 8 April 2016, Law 35(I)/2016, transposing Directive 2013/50/EU, has required a separate annual report on payments to governments: it is not part of the annual or half-yearly financial statements, and nothing is reported for the half-year. Investment firms have a different country-by-country duty, covered in What must a CIF report country by country, and what rules govern variable pay?