The Compliance Annual Report represents a reporting obligation of regulated entities, licensed to provide investment and crypto-asset services. The report signifies an overview of each firm’s compliance with the requirements of the Markets in Financial Instruments Directive (MiFID).
Within this blog post, the IforPE instructor, Evdokia Pitsillidou, presents the report’s preparation and submission timeframe and discusses findings and recommendations of the Compliance Function. To this end, a comprehensive course titled How to prepare the MiFID Compliance Report in 2023, is offered through the IforPE platform.
At the end of this blog post, we provide you with details regarding the information acquired by undertaking the course, and how it can be of use during the preparation of the corresponding report.
Preparation & submission timeframe
The Compliance Annual Report constitutes a reporting obligation of entities supervised by the Cyprus Securities and Exchange Commission (CySEC). As per the applicable regulation, the compliance function is responsible to prepare the report during the first three months of each calendar year.
The report examines the firm’s level of compliance with the MiFID framework, the compliance risks endured by the firm, and the findings and recommendations of the compliance function.
The report is delivered to the Board of Directors (BoD) the latest by the end of March. In turn, the BoD members review and approve the report before is officially submitted to CySEC. All issues raised during the meeting are recorded in the form of minutes, referencing the corrective measures decided and their respective implementation timeframes.
The report is submitted to the regulator, along with the BoD meeting minutes, within 20 days from the date of the BoD meeting or the latest by the end of April, whichever occurs first.
Findings & recommendations
Furthermore, the report’s main content discusses in detail the specific findings and recommendations as identified and provided during the onsite and desk-based reviews of the compliance function. The said findings and recommendations are the results of the compliance monitoring program employed for the fulfilment of the function’s monitoring obligations.
What is the MiFID Compliance Report course and what does it include?
The MiFID Compliance Report course has been developed by SALVUS Funds and is delivered by their Risk & Compliance Director, Evdokia Pitsillidou. The course aims to guide Compliance Officers and Assistants with the preparation of a complete and well-structured report. Further, the course takes into consideration Circular C553 on the guidelines on certain aspects of the compliance function requirements. Moreover, the course can be a useful source of information for members of the BoD, assisting them with the review and approval of the report.
Undertaking this course equips you with a report structure, the inspection areas to be assessed throughout the report and compliance tips for the report’s preparation, review and approval. The selective information provided corresponds to the accumulated experience gained by the SALVUS Regulatory Compliance team in preparing compliance reports for entities of varying business models.
The syllabus of the MiFID Compliance Report course includes:
- Compliance Function
- Effectiveness, permanence & independence
- Organisational requirements
- Monitoring obligations
- Compliance Function: Q&As
- CySEC Circular C553 - Guidelines on certain aspects of the compliance function requirements
- CySEC Circular C553
- Compliance Function responsibilities
- Compliance Function organisational requirements
- Competent authority review of the Compliance Function
- Introduction on how to prepare the MiFID Compliance Report in 2023
- Obligation, Purpose & Significance
- Timeline & Reference period
- Submission to the BoD
- Submission to CySEC
- Contents of the Report
- The CO Annual Report; Executive Summary
- Findings & Rectifications from previous year
- Findings & Recommendations for this year
- The CO Annual Report; Company Information, Legal Framework & the Business Divisions
- The Company
- Legal Framework
- Business Divisions
- The CO Annual Report; Compliance Function's Inspections, desk-based and onsite
- Policies and Procedures
- Organizational Requirements & Operating Conditions
- Client Account Opening & Closing
- Back-Office Department
- Prevention of Money Laundering & Terrorist Financing (ML & TF)
- Accounting Department & Finance Function
- Provision of Services
- Business Development & Customer Support Departments
- Information Technology
- The CO Annual Report; CySEC Communication & Reporting tips
- Correspondence with CySEC
- Other competent authorities
- Reporting tips
The material of the MiFID Compliance Report course is provided in both PDF slides and online video recordings, designed specifically for self-paced learning. Learners who register for this course are provided with the flexibility to learn wherever and whenever.
In addition, learners can test their acquired knowledge upon completion of the course by undertaking a set of test questions based on the material covered.
The completion of this course counts towards the Continuous Professional Development (CPD) annual requirements of professionals, holders of the CySEC Advanced and Basic certifications.
If you have any questions about Evdokia's course or any other questions related to your training requirements, please contact us; we would love to help.