On the 7th of December 2015, the Cyprus Securities and Exchange Commission issued a circular in order “to remind the Cyprus Investment Firms (‘CIFs’) their obligations” regarding “the reasonable and prompt handling of complaints or grievances received from clients”.

The CIFs have to implement all the appropriate procedures in order ensure their compliance with the provisions of the Directive DI144-2007-01 and in particular with paragraph 13, which concerns complaints handling.

The CIFs have to maintain an internal register “for easy reference and retrieval”. In the circular CySEC reminds the CIFs of the procedure that has to be followed when a complaint is received and its obligations:

• to confirm receipt of the complaint to the complainant within five days;
• to investigate the complaint and reply within two months. In case of a delay, the CIF must justify it and reply within three months (the latest) from the submission of the complaint;
• to submit monthly the relevant information to the CySEC. The form must be duly completed and sent within five days after each reporting month. In case of no complaints during a particular reporting month, the CIF does not have to submit the form.

For further clarifications on the exact procedures, you can get in touch with our lawyers and consultants.