Invest in Cyprus? Be smart and click on Fidescorp as your navigator
Cyprus as a destination has lately been offering a one stop shop services for the Cyprus Investment Firms.
The provision of investment and ancillary services in Cyprus is governed by the Investment Services and Activities and Regulated Markets Law 144(I)/2007, which implements the relevant EU Directive in the field of Investment Services. Investment firms are regulated by the Cyprus Securities and Exchange Commission (CySEC), under the CIFs and Investments Firms Law.
Fidescorp team can effectively navigate you throughout the whole process of investing in Cyprus.
Our team can provide: Αdvisory support towards authorisation and registration of a Cyprus Investment Firm (CIF), an Alternative Investment Fund (AIF) or an Alternative Investment Fund Manager (AIFM) regulated by the Cyprus Securities and Exchange Commission (CySEC).
Our Team can prepare: Τhe application file in accordance with current regulatory requirements and follow up the application to approval.
Thereafter, we are able to provide: Full HR, legal, compliance, accounting and internal/external audit support of the regulated entity.
FIDESCORP INVESTMENT SERVICES
in connection to the incorporation of an investment firm in Cyprus
- Preparation of the application for obtaining the authorisation from the Cyprus Securities and Exchange Commission;
- Locating qualified staff, directors, internal and external auditors
- Assist in setting up a fully fledged office with the necessary facilities
- Review the relevant questionnaires to be completed by the shareholders and directors
- Assist in completion of the necessary checklists, documentations, justifications requested by the authorities
- Assist and provide guidance in preparation of the operational Manual and Anti – Money Laundering Manual where applicable
- Development of an appropriate corporate and organisational structure;
- Preparation of the business plan;
- Full HR, legal, compliance, accounting and internal/external audit support of the regulated entity
- Favourable tax treatment;
- Passport for operations in Europe;
- Full support throughout the whole procedure and operation
Conditions and procedures for granting CIF authorization
Under the 144(I)/2007 of 26 October 2007 and 106(I)/2009 Law which provides for the provision of Investment Services, the exercise of investment activities, the operation of regulated markets and other related matters, a company licensed to provide investment services (a Cyprus Investment Firm “CIF”) must comply (among other) with the below listed requirements:
CIF Initial Capital Requirements
The initial capital requirement for granting a license to a CIF depends on the investment services that the CIF offers. There are four different types of CIF (Cypriot Investment Firm) that require different initial capital in order to fulfil the conditions for approval to operate.
(1) A CIF that provides one or more of the following investment services and holds clients' money or/and client’s financial instruments must have an initial capital of at least two hundred thousand euro (€200.000):
- The reception and transmission of orders in relation to financial instruments
- the execution of orders on behalf of clients
- Portfolio management;
- Provision of investment advice
(2) A CIF that provides the investment services stated in subsection 1(a) or/and (d) and does not hold clients' money or/and clients’ financial instruments, and which for that reason may not at any time place themselves in debt with their clients, may have an initial capital of:
- At least eighty thousand euro (€80.000) or
- at least forty thousand euro (€40.000) and professional indemnity insurance covering all member states or some other comparable guarantee against liability arising from professional negligence, that it enters into with an insurance undertaking, representing an amount of at least one million euro (€1.000.000), per claim, and in aggregate at least one million five hundred thousand euro (€1.500.000) per year for all claims.
(3) A CIF that provides one or more of the following investment services or/and performs the following investment activities shall have an initial capital of at least one million euro (€1.000.000):
- Dealing on own account;
- 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 Facility.
CIF Own Funds Requirements:
Under Article 67 of the Law a CIF must have own funds, which are at all times more than or equal to the sum of its capital requirements. The CIF's own funds must in no case fall below the level of initial capital as provided for by Law.
The application to the Cyprus Securities and Exchange Commission for the grant of an authorization shall enumerate the investment and non-core services with regard to which the authorization is requested and shall be accompanied by:
- A business plan, including a full operations schedule stating in particular the investment and non-core services which the applicant proposes to provide and its organizational structure, a presentation of the relevant plan for its prospected financial growth for the first two financial years and the names of at least two experienced and reliable persons who shall direct its business;
- The applicant’s preliminary Articles of incorporation or draft Articles, such as they are expected to be formulated after the grant of the CIF authorization.
- An excerpt of the criminal record, certificates of non-insolvency and resumes of the members of the applicant’s Board of Directors, its executives and shareholders possessed of a qualifying holding in it, as well as their answers to the questionnaire the contents of which shall be determined by Cyprus Securities and Exchange Commission Resolution.
- A draft of the applicant’s internal regulation, including in particular the applicant’s internal control and risk management mechanisms, any special measures which the applicant has adopted with a view to rendering such internal regulation compatible with the CIF prudential rules and business conduct rules, as well as any other necessary internal regulations, depending on the investment and non-core services which the CIF proposes to provide.
- A draft organization schedule of the applicant.
- Description of the applicant’s computer network and electronic infrastructure.
- A draft regulation, in accordance with acceptable practices, for the prevention of the legalization of the proceeds of criminal-activities.