Regulatory Alerts2024-09-26 | C659CySEC Circular C659: Fractionalisation of Shares
The Cyprus Securities and Exchange Commission issued Circular C659 to clarify that fractional exposure in shares achieved through trust arrangements qualifies as exposure in Shares per se under Law 87(I)/2017. This designation subjects Cyprus Investment Firms to specific trading, holding, and client asset safeguarding obligations mandated by MiFIR and national law. The guidance mandates that such trust structures must be properly documented and ensures clients retain proportional beneficial rights, while excluding non-trust fractional instruments from this classification.
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