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Cyprus Investment Firms

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Law 144(I)/2007 Investment Services and Activities and Regulated Markets Law of 2007 regulates the provision of investment and ancillary services, as well as the performance of investment activities on a professional basis in the Republic.

Cyprus investment firms (CIFs) are regulated and supervised by the Cyprus Stock and Exchange Commission (CySEC).   To operate as a CIF a license must be obtained from CySEC.

A CIF may provide investment services and investment activities on a professional basis only if it has received prior authorization from CySEC, in accordance with the provisions of the law and directives and may only provide the investment and ancillary service and/or only perform the investment activities that are stated in its authorisation.

Investment Services and investment Activities are defined in Part I of the Third Appendix, to the law and financial instruments are listed in Part II of the Third Appendix (Sub-sec 2(1)) as follows:-

Part I - Third Appendix Investment Services and Activities

  1. Reception and transmission of orders in relation to one or more financial instruments
  2. Execution of orders on behalf of clients
  3. Dealing on own account
  4. Portfolio management
  5. Investment advice
  6. Underwriting of financial instruments and /or placing of financial instruments on a firm commitment basis.
  7. Placing of financial instruments without a firm commitment basis
  8. Operation of Multilateral Trading Facility (MTF)

Part II - Ancillary Services

  1. Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management
  2. Granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction
  3. Advice to undertakings on capital structure, industrial strategy and related maters and advice and services relating to mergers and the purchase of undertakings
  4. Foreign exchange services where these are connected to the provision of investment services
  5. Investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments
  6. Services related to underwriting
  7. Investment services and activities as well as ancillary services of the type included in Parts I and II related to the underlying of the derivatives included under para 5, 6, 7 and 10 or Part III where these are connected to the provision of investment or ancillary services.

Part III - Financial Instruments

  1. Transferable securities
  2. Money-market instruments
  3. Units in collective investment undertakings
  4. Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, or other derivative instruments, financial indices or financial measures which may be settled physically or on cash.
  5. Options, futures, swaps, forward rate agreements and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event)
  6. Options, futures, swaps and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market and/or MTF.
  7. Options, futures, swaps, forwards and any other derivative contracts relating to commodities that can be physically settled not otherwise mentioned in para 6 of part III and not being for commercial purposes, which have the characteristics or other derivative financial instruments, having regard to whether, inter alia, they are cleared and settled through recognized clearing houses or are subject to regular margin calls.
  8. Derivative instruments for the transfer of credit risk
  9. Financial contracts for differences
  10. Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event), as well as any other derivative contract relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Part, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market or an MTF, are cleared and settled through recognized clearing houses or are subject to regular margin calls.

How can we support and assist you

We can assist you in obtaining a company registration and subsequent authorisation from CySEC as a Cyprus Investment Firm (CIF)

Including

  • Registration of company with the Registrar of Companies and Official Receiver
  • Application to CySEC (CIF authorization) and assistance with the preparation of the documentation for submitting to CySEC
    • business plan
    • organizational structure
    • operations manual
    • policies and procedures
      • Dealing with the client
      • Internal Organization
      • Dealing with Markets
  • Financial Reporting

We can provide you with the Compliance and Money Laundering Officer Functions.

We can provide you with the Internal Audit Function.

We can also provide Ongoing Regulatory Reporting and the annual financial reporting disclosures required.