Regulated Investment Services

The commission is responsible for overseeing and regulating the following services (shown in the table below). The first task is therefore to decide which services a license should be applied for.

 

Number

Investment Service

Description

1 Reception and transmission of orders in relation to one or more financial instruments. Reception and transmission of client orders, without the need to obtain information regarding the knowledge and experience of the client in order to assess the appropriateness of the service or the instrument for the client.
2 Execution of orders on behalf of clients. Acting to conclude agreements to buy or sell one or more financial instruments on behalf of clients.
3 Dealing on own account. Trading against proprietary capital resulting in the conclusion of transactions in one or more financial instruments. The terms “trade on own account” or “trading on own account” have similar interpretation.
4 Portfolio management. Managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more financial instruments.
5 Investment advice.

The provision of personal recommendation to a client, either after his request, or on the initiative of the CIF, in relation to one or more transactions related to financial instruments.

(a) Is made to a person in his capacity as a client or potential client, or in his capacity as an agent of a client or a potential client, and (b) is presented as suitable for the client, or is based on a consideration of the circumstances of the client (i) to buy, sell, subscribe for, exchange, redeem, hold or underwrite a particular financial instrument.

But does include a recommendation that is issued exclusively through distribution channels or to the public.

6 Underwriting of financial instruments and/or placing of financial instruments on a firm committed basis. Underwriting refers to the process whereby an investment bank raises investment capital from investors on behalf of corporations and/or governments that are issuing securities (either Equity or Fixed Income). It assumes that the underwriter has taken on the risk of distributing the securities. Should he be unable to find enough investors, he will have to hold some securities for himself.
7 Placing of financial instruments without a firm commitment basis.  
8 Operation of Multilateral Trading Facility. A multilateral system operated by a CIF or market operator, which brings together or facilities the bringing together of multiple third-party buying and selling interest in financial instruments – in the system and in accordance with its non-dictionary rules.

Take the next step, we are here to help.

Register a Cyprus Investment Firm company.
Open a Cyprus Investment Firm bank account.

  Resources:

Current Information on the Payment of Cyprus Income Tax

Current Information on the Payment of Cyprus Income Tax

An individual is considered to be tax resident in Cyprus by spending a total (consecutive or otherwise) of 183 days or more in any one calendar year in Cyprus. Anyone earning an income in Cyprus falls into two categories:

UK Company Law: The Doctrine of Lifting the Corporate Veil

UK Company Law: The Doctrine of Lifting the Corporate Veil

One of the main advantages of forming a legal entity is to limit the liability of the members of the company. However, in some circumstances, legal entities can be disregarded. This process is known as piercing the corporate veil and is the most common method for shareholders to take responsibility for the actions of the corporation.

How to Spot Professional Money Laundering Activities: A Guide for Companies

How to Spot Professional Money Laundering Activities: A Guide for Companies

A sound client due diligence (CDD) policy is crucial for any providers offering banking, incorporation, legal or accounting services to any extent or otherwise. Compliance must play a huge role around all company decisions to accept and work with new clients, with an explicit set of rules for knowing and identifying different risk categories.

Creating Physical Presence & Capital Requirements for Cyprus Shell Company Crackdown

Creating Physical Presence & Capital Requirements for Cyprus Shell Company Crackdown

Recently, the Cyprus Central Bank issued guidance to banks & credit institutions, advising them of the new mandatory refusal to take on new clients or to continue servicing existing accounts with so-called shell or letter-box companies.

How the UK is Combating Offshore Culture & How it Could be Doing More

How the UK is Combating Offshore Culture & How it Could be Doing More

Typical tax haven destinations such as BVI, Jersey and Switzerland have always been in the spotlight from profiting off of helping clients circumvent legislation in their jurisdiction of residence for decades.

Nevis: The Offshore Tax Haven Nation of the World

Nevis: The Offshore Tax Haven Nation of the World

In the world of offshore, Nevis specialises in letting its clients create corporations with greater anonymity than almost anywhere else on earth. Since 2012, the island’s financial services sector has grown exponentially, as those wishing to retain anonymity relocated to a place that promises just that. However, with ever-expanding counter legislation cropping up globally, how can Nevis continue to host such controversial services?

Expert Opinion on Cyprus’ New Borrower Incentives to Reduce the Islands NPLs

Expert Opinion on Cyprus’ New Borrower Incentives to Reduce the Islands NPLs

The Cyprus Ministry of Finance has released a statement regarding the IMF (the International Monetary Fund) & the European Commission is recommending Bills regarding the islands longstanding issue with Non-Performing Loans.

Keeping Europe Up-to-date with the Latest Legal & Financial Technology

Keeping Europe Up-to-date with the Latest Legal & Financial Technology

The financial world is undergoing a technological revolution, with approximately 3 trillion financial deals entered into using digital ledger technology (DLT) and smart contracts within the next five years.