CYPRUS Law and Practice Contributed by: Marcos Georgiades, Dominique Pelides and Panayiota Elia, Georgiades & Pelides
The Resolution Regulation contains the same resolution tools as the Resolution Law, and the powers of the Resolution Board under the Reso - lution Regulation are similar to the powers of the Resolution Authority. Deposits All deposits that are eligible for the payment of compensation from the DGS are fully protected up to the maximum amount set out in the Depos - it Guarantee Regulations if resolution measures are taken in relation to a bank. All other deposits rank pari passu in a bank’s resolution. In addition to EU-wide regulatory initiatives that are directly applicable in Cyprus, Section 151A of the Companies Law requires certain Cyp - riot companies to include certain non-financial reporting in the management report included in their annual financial statements. This reporting should include, inter alia, information that is suf - ficient to assess the development, performance and position of the company and the impact of its activities in relation to environmental, social and employment matters. The information must include the policies applied by the company in the areas identified, the results of the application of those policies, the main risks identified, and the non-financial performance indicators related to the activities concerned. This obligation applies to entities that: 9. ESG 9.1 ESG Requirements • are large companies (ie, companies that fulfil at least two of the following criteria: total bal - ance sheet exceeding EUR20 million, turno - ver exceeding EUR40 million, and an average
number of employees during the year of 250 or more); • are “public interest undertakings”; and • have an average number of employees exceeding 500 during the financial year. “Public interest undertakings” takes its mean - ing from the Auditors Law of 2017, Law No 53(I)/2017, and includes (among others) credit institutions authorised pursuant to the Banking Law. Under the EU’s Digital Operational Resilience Act (known as “DORA”), which will apply from 17 January 2025, financial entities will become subject to various obligations concerning the management of risk associated with the infor - mation and communication technology (ICT) systems supporting their business processes. DORA provides that member states shall con - fer on competent authorities the power to apply administrative penalties, subject to the condi - tions provided for in national law, to members of the management body of financial entities that are in breach of the requirements of DORA. No such national law has been introduced in Cyprus as yet. 10. DORA 10.1 DORA Requirements
11. Horizon Scanning 11.1 Regulatory Developments
Despite the deadline for transposition of Direc - tive (EU) 2021/2167 of the European Parlia - ment and of the Council of 24 November 2021 on credit servicers and credit purchasers and amending Directives 2008/48/EC and 2014/17/ EU (the “Credit Servicing Directive”) by EU mem -
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