Section 32(1) of Law 56(Ι)/2013 (‘the Law’), transposes the provisions of Article 25 of the Directive. Based on Section 32(1) of the Law, CySEC uses the information collected under section 31 of the Law, for the purposes of identifying the extent to which the use of leverage contributes to the built-up of systemic risk in the financial system, risks of disorderly markets or risks to the long-term growth of the economy.

The purpose of the Guidelines, which apply to National Competent Authorities, is to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision and to ensure the common, uniform and consistent application of Article 25 of the Directive. In particular, they relate to the assessment of leverage-related systemic risk and aim to ensure that NCAs adopt leverage related measures are met. The Guidelines apply from 23 August 2021 for the AIFMs that have a reporting obligation under Section 31 of the Law.

CySEC has adopted the Guidelines and therefore urges the AIFMs reporting under Section 31 of the Law, to make every effort to comply with the reporting obligations of the Law, within the set deadlines.