In a surprising move during the Christmas period, the Cyprus Securities and Exchange Commission (CySEC) has broken its six-month consultation silence by proposing significant changes to its prospectus regulations. These new rules, introduced on December 27, aim to expand the acceptance of English-language prospectuses for Cyprus-based investment firms (CIFs), particularly in the FX/CFD sector.

The proposal would allow companies to submit prospectuses in English for a broader range of cases while ensuring investor protection with the inclusion of mandatory Greek-language summaries. This marks a departure from the current policy where Greek is the default language for prospectuses, with English only permitted in limited circumstances.

CySEC Important Changes To Prospectus Regulations

CySEC explained that the revision aims to balance greater operational efficiency with investor protection. “The proposal to amend the approach for accepted languages, while requiring a Greek summary with essential investment information, ensures investor protection in a proportionate manner,” stated the regulator.

For Cyprus Investment Firms, especially those in the foreign exchange (FX) and contracts for difference (CFD) sectors, this proposed change could simplify the documentation process, particularly for firms serving a predominantly English-speaking international clientele. English is already the primary language of communication in these sectors, and the move could enhance the competitiveness of Cypriot firms by aligning regulatory requirements with industry practices.

The consultation period for the proposed changes runs until January 20, 2025, during which industry stakeholders can submit their feedback to CySEC.

In addition to the proposed language reforms, CySEC has been active with other regulatory initiatives. These include measures to combat weapons proliferation financing, updates to the regulator’s website for improved transparency, and the introduction of new rules for crypto asset service providers in line with the European MiCA regulation, which officially took effect on December 30, 2024.

Also, stay updated with the Latest Broker News.