Regulatory Alerts2023-07-03 | C585ESMA Guidelines on temporary restrictions for significant non-default events under EMIR Article 45a
The Cyprus Securities and Exchange Commission (CySEC) has incorporated ESMA Guidelines into its supervisory practices to specify circumstances for imposing temporary restrictions on Central Counterparties during significant non-default events. These restrictions, permitted under Article 45a of EMIR, prohibit CCPs from distributing dividends, buying back ordinary shares, or creating variable remuneration obligations for senior management to protect capital resources. The Guidelines provide CySEC with indicators to assess the necessity of such measures, which became applicable on August 2, 2023, without mandating automatic restrictions when specific indicators are met.
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