Joint EBA and ESMA Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) under Directive (EU) 2019/2034

TO : Cyprus Investment Firms (CIFs)
FROM : Cyprus Securities and Exchange Commission DATE : September 27, 2023 CIRCULAR NO. : C600 SUBJECT : Joint EBA and ESMA Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) under Directive (EU) 2019/2034 (EBA/GL/2022/09, ESMA35-36- 2621)

1. The Cyprus Securities and Exchange Commission (the “CySEC”) wishes to bring the
   attention of the Cyprus Investment Firms (the “CIFs”) the Joint EBA and ESMA Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) under Directive (EU) 2019/2034 (the ‘Guidelines’). It is noted that the Guidelines were published on July 20, 2022.
2. CySEC has adopted the Guidelines, under section 29 of the Prudential Supervision of
   Investment Firms Law of 2021, which transposes Article 36 of the Directive (EU) 2019/20341 (the “IFD”) .
3. The Guidelines specify the common procedures and methodologies for the functioning of
   the supervisory review and evaluation process (SREP) referred to in Articles 36 and 45 of IFD and processes and actions taken with reference to Articles 39, 40, 41 and 42 of IFD.
4. The Guidelines apply in relation to the supervisory review and evaluation process (SREP)
   of the investment firms as defined in Articles 36 to 45 of Directive (EU) 2019/2034.
5. The Guidelines apply from 19.06.2023 and are applicable to the SREP exercises initiated
   in 2023.
   Sincerely,
   Dr. George Theocharides
   Chairman
   Cyprus Securities and Exchange Commission
   1 Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019 on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU {OJ L 314 5.12.2019, p. 64}.