By Kerabelle IT & Management Group · Last updated
Why is IT different for a CySEC-regulated firm?
Firms regulated by the Cyprus Securities and Exchange Commission operate under EU-wide financial services rules (including MiFID II) as well as CySEC's own supervision. Outsourcing an IT function does not remove the firm's own regulatory responsibility for it, which changes what a managed IT agreement needs to cover:
- Record-keeping: communications, transaction data and client records often need to be retained and retrievable for a defined regulatory period
- Business continuity: regulators expect documented continuity and disaster recovery arrangements, not an informal backup routine
- Outsourcing oversight: the firm remains accountable for any function it outsources, including IT, which means the provider needs to support audits and due diligence requests
- Data security: client financial data and trading records are a high-value target, and security needs to be demonstrable, not just assumed
What should a CySEC-regulated firm ask an IT provider for?
- A written description of backup, retention and retrieval arrangements that maps to your actual record-keeping obligations
- Evidence of tested disaster recovery, not just a backup schedule
- Willingness to support internal and regulatory due diligence on the outsourced IT function, including documentation your compliance team can present
- Clear ownership of security monitoring and incident response, with defined timelines for client notification if something goes wrong
Is this page legal or compliance advice?
No. This is general technology guidance, not a statement of your specific regulatory obligations. Confirm your actual record-keeping, continuity and outsourcing requirements with your compliance function or legal adviser, and brief your IT provider against those confirmed requirements.