CySEC highlights new EU rules on sustainability and ownership reporting

The Cyprus Securities and Exchange Commission (CySEC) has urged financial firms and investment managers to follow new European guidance on sustainability claims and prepare for standardised reporting of company ownership information, as part of efforts to improve transparency and consistency across financial markets. In two circulars issued this week, the regulator highlighted European Securities and Markets Authority (ESMA) guidance on sustainability-related claims and a new European Union regulation setting common formats for reporting beneficial ownership information. In the first circular , CySEC drew the attention of regulated entities to 2 new thematic notes published by ESMA on October 12, 2026, covering impact claims and transition claims linked to sustainability.

The guidance follows an earlier circular, C752, which informed regulated entities about ESMA’s second thematic note, focusing on environmental, social and governance (ESG) strategies . The third note addresses impact claims, while the fourth covers transition claims, with both forming part of ESMA’s wider work on ensuring that sustainability-related statements are clear, fair and not misleading. CySEC urged investment fund managers and Cyprus investment firms to keep up to date with the publication of these notes and said it expected them to take the guidance into account when meeting their existing ESG obligations. The circular applies to Cyprus investment fund managers, including management companies and self-managed funds operating under the Undertakings for Collective Investment in Transferable Securities (UCITS) framework, as well as alternative investment fund managers, including smaller and sub-threshold managers, and Cyprus investment firms. The second circular concerns a new EU regulation…