Through Circular 502, CySEC wishes to inform the Regulated Entities that the European Securities and Markets Authority (ESMA) published on February 8, 2022, an announcement regarding the 2022 Common Supervisory Approach (CSA) on MiFID II Costs and Charges.

ESMA, the EU's securities markets regulator, is launching a Common Supervisory Action (CSA) with National Competent Authorities (NCAs) on the application of MiFID II Costs and Charges disclosure rules across the European Union (EU). The CSA will be conducted during 2022. The focus of the CSA will be on the information provided to retail clients. NCAs will review how firms ensure that these disclosures:

• are provided to clients in a timely manner
• are fair, clear, and not misleading
• are based on accurate data reflecting all explicit and implicit costs and charges and
• adequately disclose inducements.

CySEC is planning to conduct on-site visits and/or desk-based reviews on a sample of CIFs that fall within the scope of the said CSA, providing investment services to retail clients.

Through Circular C504, CySEC wishes to inform the Regulated Entities that the European Securities and Markets Authority (ESMA) has published the Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements (the 'Guidelines') on April 14, 2022, translated in all official languages of the EU. Regulated Entities must take all the necessary steps to comply with the Guidelines.

The Guidelines' main purpose is:

• to clarify the application of certain aspects of the MiFID II appropriateness and execution-only requirements
• to ensure the common, uniform, and consistent application of the MiFID II appropriateness and execution-only requirements.
• to focus on promoting a better coordination in the application of and supervisory approaches to the MiFID II appropriateness and execution-only requirements, by emphasizing several important issues, and thereby enhancing the value of existing standards.

Finally, the Guidelines apply from six months of the date of publication of the guidelines on ESMA's website in all EU official languages, i.e. 13 October 2022.

On 01 April 2022, the European Securities and Markets Authority (ESMA) updated the following Questions and Answers (Q&As):

• Benchmarks Regulation (BMR)
• ESMA Guidelines on Alternative Performance Measures
• MiFIR data reporting
• SFTR data reporting

On 12 April 2022, the European Securities and Markets Authority (ESMA) published the official translations of the Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements.

The Guidelines will start applying from 12 October 2022.

On 29 April 2022, the European Securities and Markets Authority (ESMA) advised the European Commission (EC) on certain aspects relating to retail investor protection.

ESMA in this advice presents proposals that will make it easier for investors to get the key information they need to take well-informed investment decisions, whilst also protecting them from aggressive marketing techniques and detrimental practices.

The proposals aim at maintaining a high level of investor protection, while ensuring that retail investors can benefit from digitalisation opportunities.

On 7 April 2022, the Cyprus Securities and Exchange Commission (CySEC) published the Directive relating to the EU Directive 2019/1153 where a few rules were voted that facilitate the use of financial and other information for the prevention, detection and investigation of certain criminal offences. Those are: (i) For the exchange of the similar financial information taken from the financial intelligence of the Republic of Cyprus and the financial intelligence of the EU Member States, they need to take the relevant provisions and (ii) Ensure that the financial information that was retrieved falls within the relevant provision of the data protection laws.

On 21 April 2022 the Ministers of the Financial Action Task Force (FATF) took a meeting in order to improve the effectiveness on the measures against money laundering, terrorist and proliferation financing. More specifically, to take action by promptly implementing the FATF's global beneficial ownership rules, which were strengthened earlier this year.

The President of FATF reported on the successful completion of the FATF's Strategic Review, which ministers welcomed and expect to achieve more timely assessments with a stronger focus on risk in the next round of mutual evaluations.

It was also decided that meetings will take place every 2 years in order to be updated.

On 13 April 2022, the European Securities and Markets Authority (ESMA) published the official translations of its revised Guidelines on delay in the disclosure of inside information and interactions with prudential supervision under the Market Abuse Regulation (MAR).

The Guidelines provide the following:

1. a non-exhaustive and indicative list of legitimate interests of the issuers that are likely to be prejudiced by immediate disclosure of inside information and situations in which delay of disclosure is likely to mislead the public and
2. clarifications concerning the existence of inside information in relation to Pillar 2 Capital Requirements and Pillar 2 Capital Guidance.