The Cyprus Investment Firms Law 144(I) 2007-2012 (the“Law”) provides the legal framework for the provision of investment services as well as for the registration, regulation of operations and supervision of Cypriot Investment Firms (CIF).
Under the provisions of the Law, the following entities may provide investment services on a professional basis:
- CIF: investment firms operating within Cyprus, excluding credit institutions, provided that the CIF hasobtained the appropriate authorization from the Cyprus Securities and Exchange Commission (CySEC);
- Credit institutions established in Cyprus, provided that the credit institutions have received an authorization from the Central Bank of Cyprus (CBC) in accordance with the provisions of the Banking Acts 1997 to 2000 for the provision of investment and ancillary services;
- Investment firms with their registered offices outside Cyprus whether rendering investment or ancillary services through a branch, tied agent or operating on a cross border basis without a branch, provided they have been granted a licence from the regulators of anEU member state.
As per the provisions of the Law, the following constitute investment services:
- reception and transmission of orders in relation to one or more financial instruments;
- execution of orders on behalf of clients;
- dealing on own account;
- portfolio management;
- Investment advice;
- underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis;
- placing of financial instruments without a firm commitment basis;
- operation of Multilateral Trading Facilities (MTF).
- safekeeping and administration of financial instruments for the account of client;
- granting credits or loans to an investor to allow him tocarry out a transaction in one or more financial instrument;
- advice to undertakings on capital structure, industrial strategy and related matters;
- foreign exchange services where these are connected to the provision of investment services;
- investment research and financial analysis;
- services related to underwriting;
- investment services and activities as well as ancillary services of the type included under above points
- related to the underlying of derivatives, where these are connected to the provision of investment or ancillary services