The Cyprus Securities and Exchange Commission (CySEC) has announced proposed amendments to the fees payable by entities operating in the collective investment management sector, launching a public consultation on the planned changes.
- According to the proposal, the new fees under consultation could reach up to €45,000. This significant increase aims to reflect the scale and complexity of activities undertaken by these entities.
In a newly published consultation paper, CySEC outlined proposals for revised charges that will affect management companies and investment funds. These fees will vary based on the type, category, and size of the supervised entities.
Investment management: Proposed Fee Structure
According to the proposal, the new fees under consultation could reach up to €45,000. This significant increase aims to reflect the scale and complexity of activities undertaken by these entities.
Changes to Annual Fees
The commission explained that the amendments will introduce changes to the methodology used to calculate annual fees. This is part of a broader effort to ensure that fees align more closely with the nature of the business conducted by the entities.
Amendments to Application Fees
In addition to annual fees, the proposals also include amendments relating to authorisation application fees. Charges associated with material changes in supervised entities will also be revised, depending on their specific category.
New Disclosure Requirements
As part of the proposed changes, the consultation paper introduces new types of information disclosures that supervised entities would be required to submit. This move aims to enhance transparency and regulatory oversight within the sector.
Streamlining Notification Obligations
At the same time, CySEC intends to remove notification obligations that are no longer applicable. This step is viewed as part of a larger initiative to streamline the regulatory framework, making it more efficient for both the regulator and the entities involved.
Aiming for Financial Autonomy
The commission stated that this revision forms part of a comprehensive review of all CySEC fees and charges. The objective is to reduce the regulator’s dependence on public resources while strengthening its financial autonomy.
As the public consultation unfolds, stakeholders in the investment management sector will have the opportunity to provide feedback on these proposed changes, which could significantly reshape the fee landscape in Cyprus.
