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Contribution of Cyprus investment firms to the Single Resolution Fund and National Resolution Fund

The Cyprus Securities and Exchange Commission (CySEC) has announced its plans regarding implementation of the EU Bank Recovery and Resolution Directive (2014/59/EU), which establishes a framework for the recovery and resolution of credit institutions and investment firms, and which is in the final stages of being transposed into national law. CySEC will be designated as the Competent Authority for Cyprus investment firms (CIFs) and the Central Bank of Cyprus will be the Resolution Authority.
CIFs that deal in financial instruments for their own account or underwrite issues of financial instruments on a firm commitment basis, and that are consequently required to hold initial capital of €730,000 under the Investment Services and Activities and Regulated Markets Law of 2007, fall within the scope of the Directive. Smaller CIFs are outside the scope of the Directive. 
Article 103 of the Directive requires enterprises within its scope to contribute to either the European Single Resolution Fund or the relevant National Resolution Fund established by Regulation (EU) 806/2014. Members of a financial conglomerate covered by the consolidated supervision of its parent undertaking carried out by the European Central Bank are required to contribute to the Single Resolution Fund and other enterprises are required to contribute to their National Resolution Fund. Contributions to the National Resolution Fund will be defined in proportion to the CIF’s risk profile on the basis of the information it provides in accordance with article 14 of the Regulation. Smaller CIFs will be required to contribute a lump sum payment to the National Resolution Fund in accordance with Commission Delegated Regulation (EU) 2015/63.
CySEC will announce the detailed arrangements regarding the contributions and their timing when these are finalised.