The Investment Firms Act of 2002 (the "Act") provides the legal framework for the provision of investment services as well as for the registration, regulation of operations and supervision of CIFs.

The Investment Services and Activities Regulated Markets Law of 2007 - Law 144(I)/2007, provides the optimal legal framework for potential investors to consider Cyprus as the ideal jurisdiction for permanent establishment of their business.

The Law came into force on 1st November 2007, replacing the old Investment Firms Law of 2002 and implementing the provisions of the EU's Markets in Financial Instruments Directive (MiFID) into the domestic law.

The implementation of this new legal framework makes Cyprus an attractive place for establishing a Cyprus Investment Firm (CIF), offering investors and businesses a "single passport" to provide investment services across the European Union (EU).

With the lowest corporate tax rate in the EU, a sophisticated services industry and a highly developed infrastructure, Cyprus is fast gaining a competitive position within the global financial services industry. The Cyprus Investment Firm is indeed considered a valuable vehicle used by the international investor for investment activities within the EU or outside the EU.

The Act governs the provision of investment and non-core services in Cyprus, as well as the provision of investment and non-core services from within Cyprus.

Investment services include any of the following services:

  • Reception and transmission, on behalf of investors, of orders in relation to one or more financial instruments as these are defined in the Act
  • Execution of such order (above), other than for own account
  • Dealing in financial instruments for own account
  • Managing of investment portfolios in accordance with mandates given by investors where such portfolios include one or more financial instruments
  • Underwriting in respect of issues of financial instruments as these are defined in the Act
  • Non-core services include any of the following services:
  • Safekeeping and administration in relation to one or more financial instruments
  • Safe custody services
  • Granting of credits or loans to clients to enable them to carry out transactions in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction
  • Advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and acquisitions
  • Services connected to underwriting
  • Investment advice concerning one or more financial instruments
  • Foreign-exchange services where these are connected with the provision of investment services

CIFs must be licensed by the Cyprus Securities & Exchange Commission, which is the relevant regulatory and supervisory authority (www.cysec.gov.cy).

What can we do for you?

We can help in obtaining a CIF authorisation by assisting in one or more of the following areas:

  • The preparation and the ongoing administration of the application for obtaining the CIF authorisation
  • The design and implementation of an appropriate corporate and organisational structure
  • The preparation of the business plan.
  • The preparation of the internal regulation placing emphasis on the appropriate control mechanisms that should be in place
  • The outsourcing or assistance with selected non-core functions of the company (accounting and internal audit functions)

What are the key benefits?

  • Efficient management of the application process
  • Appropriate corporate and organisational structures
  • One-stop solution
  • Permanent access to a team of experienced specialists with local expertise
  • Compliance with statutory filing deadlines

CFA Auditors - Cyprus Audit Tax Advisory © 2017