EU Commission calls on CYPRUS to fully apply EU rules on the publication of financial statements, management reports and audit reports by limited liability companies

The Commission has today decided to send a letter of formal notice to Cyprus on the grounds that Cypriot law does not comply with EU rules on the publication of financial statements, management reports and audit reports by limited liability companies (Directive 2013/34/EU “Accounting Directive”, in conjunction with Directive 2017/1132/EU “Company Law Directive”).

Pursuant to EU law, the publication of limited liability companies’ accounting documents must take place within a reasonable period of time, not exceeding 12 months after the end of their fiscal year.

The Commission has determined that Cypriot law may entail publication beyond this period. Moreover, based on exchanges with the Cypriot authorities and other investigations, it appears that the accounting documents of several Cypriot investment firms are not yet publicly available via the Cypriot business register (Department of the Registrar of Companies and Official Receiver of the Ministry of Energy, Commerce, Industry and Tourism) for fiscal years ending more than 12 months ago.

Cyprus has four months now to reply to the arguments raised by the Commission. Otherwise, the Commission may decide to send a reasoned opinion.

Daniel Ferrie

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