Investment firms should stop calculating contributions to ICF as regulatory capital, Cysec says

Cyprus Securities and Exchange Commission (Cysec) has instructed its supervised entities (Cyprus Investment Firms – CIFs) to stop calculating their contributions to the Investors Compensation Fund (ICF) as regulatory capital in a bid to terminate the funds systemic nature, Cysec Chairwoman Demetra Kalogirou told CNA.

In a circular issued on October 10, Cysec notes “the treatment of the ICF contribution, for capital adequacy purposes, is changing as of today.”

The CIFs are instructed to deduct the ICF contribution presented in their records from Common Equity Tier 1 Capital and must no longer risk weight the relevant amount, when total risk exposure amount is calculated.

Source: Cyprus News Agency