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 establishing common formats for submitting information about beneficial ownership, meaning the individuals who ultimately own or control companies and other legal entities.

CySEC said Commission Implementing Regulation (EU) 2026/2354, dated October 16, 2026, was published in the Official Journal of the European Union on October 22.

The regulation aims to improve the quality, consistency and compatibility of ownership information held in central registers across the EU by standardising how the information is submitted.

The common formats are intended to make beneficial ownership records more consistent and easier to use across national registers, supporting the exchange and comparison of information between member states.

The regulation will apply from July 10, 2027, and will be binding in its entirety and directly applicable in all EU member states.

CySEC encouraged regulated entities to take the regulation’s provisions into consideration ahead of its application, referring them to the published legal text for further details.

The second circular applies to a broad range of regulated organisations, including crypto-asset service providers, Cyprus investment firms, administrative service providers, UCITS management companies, self-managed UCITS, alternative investment fund managers and self-managed alternative investment funds.

It also covers self-managed alternative investment funds with a limited number of persons, companies established solely to manage such funds, and small alternative investment fund managers.

Together, the 2 circulars highlight the regulator’s expectation that financial-sector firms keep abreast of evolving EU requirements on sustainability communications and ownership transparency.