Cyprus Investment Firm (CIF) License
CYPRUS INVESTMENT FIRM (CIF) LICENSING & SUPPORT SERVICES
Oxford maintains specialised team with long and specific experience in the financial sector, and can assist you on the registration process of your Cyprus Investment Firm (CIF), at a minimum time after submission of the relevant application form to the competent authorities in Cyprus (Cyprus Securities and Exchange Commission – CySec).CYPRUS INVESTMENT FIRM (CIF) LICENSE
Oxford Management can assist you obtain a Cyprus Investment Firm (CIF) license through the provision of the following services:
- Advise on the application for the correct license so that to be able to provide the investment services wished to offer;
- Assist with the preparation and administration of the application for your CIF authorisation as well as open a bank account for you.
- Design and implement a structure organised specifically for your company, as well as prepare the business plan, due diligence manual and an internal operation manual.
- Prepare the internal regulation, focusing on the correct control mechanisms, and outsource or assist you in your non-core functions, including internal auditing and accounting functions.
- Obtain a license from CySEC for the provision of the desired investment services;
- Expanding the license to EU and non EU countries.
The Investment Services and Activities and Regulated Markets Law of 2017 (Law 87(I)/2017), as amended, which implements the Markets in Financial Instruments Directive (MiFID II), provides the legal framework governing Cyprus Investment Firms (CIFs). A Cyprus Investment Firm authorised by the Cyprus Securities and Exchange Commission (CySEC) may, subject to the applicable regulatory requirements, exercise its passporting rights to provide investment services throughout the European Economic Area (EEA).
Cyprus combines a competitive corporate tax regime with a highly developed financial services infrastructure, an English-based legal system, a skilled professional workforce and a strategic location at the crossroads of Europe, Asia and the Middle East, making it an ideal jurisdiction for establishing an investment firm.
We have prepared a technical report outlining the principal features of the applicable legislation and the key requirements for establishing and licensing a Cyprus Investment Firm.
Oxford Management Limited provides comprehensive advisory and administrative support throughout the licensing process. Our services include advising on the appropriate licence for your proposed activities, preparing and submitting the application for authorisation, coordinating the licensing process with CySEC, and ensuring compliance with the applicable regulatory requirements.
In addition, we assist with the establishment of the corporate structure, the preparation of the business plan, internal policies and procedures, and the regulatory manuals required for authorisation. We can also assist in identifying suitably qualified executive and non-executive directors, compliance officers and other key personnel, as well as providing ongoing corporate, legal, accounting, tax, compliance and audit support to your investment firm.
CRITERIA FOR SUCCESSFUL CYPRUS INVESTMENT FIRM APPLICATION
The main criteria that need to be satisfied by the Commission in order to grand an authorisation are:
- Minimum Initial Capital – The applicant must maintain the minimum initial capital required for the specific investment services and activities for which authorisation is sought.
- Fit and Proper Management – The company must be managed by at least two suitably qualified and experienced executive directors, ensuring compliance with the "four eyes" principle. CySEC will assess their competence, experience, integrity and good reputation..
- Local Substance – The company should demonstrate an adequate operational presence in Cyprus, including appropriately qualified personnel and effective management and control within Cyprus, in accordance with the nature, scale and complexity of its activities.
- Qualified Key Function Holders – Individuals appointed to key control functions, such as Compliance, Anti-Money Laundering (AML), Risk Management and Internal Audit (where applicable), must possess the necessary qualifications, experience and any certifications required under the applicable CySEC framework.
- Adequate Financial Resources – The applicant must demonstrate sufficient financial resources to support its proposed operations and ongoing regulatory obligations.
- Robust Organisational Structure – The company must establish appropriate governance arrangements, organisational structures and internal control mechanisms proportionate to the nature and scale of its business.
- Information Technology Systems – Appropriate and secure IT infrastructure and operational systems must be in place to support the firm's activities and ensure compliance with applicable regulatory requirements.
- Investor Protection Measures – The applicant must implement effective procedures for safeguarding clients' assets (where applicable), managing operational and regulatory risks, and preventing or appropriately managing conflicts of interest.
- Policies and Procedures – Comprehensive internal policies and procedures must be established, including AML/KYC procedures, compliance policies, risk management, complaints handling, outsourcing arrangements, business continuity planning and other regulatory manuals required by CySEC.
PROCEDURE FOR THE GRANTING OF A CIF AUTHORISATION
In order to obtain a license, the interested party should submit an application to the CYSEC.
The main documents to accompany the application are:
- Business Plan outlining the proposed investment services and activities, organisational structure, target markets, risk management framework and detailed financial projections for at least the first two years of operation.
- Draft Memorandum and Articles of Association reflecting the company's proposed activities and governance structure.
- Organisational Structure Chart, including details of the proposed Board of Directors, senior management and key function holders, demonstrating compliance with the "four eyes" principle and the applicable governance requirements.
- Operations and Compliance Manual, incorporating the firm's internal policies and procedures, including governance arrangements, compliance monitoring, anti-money laundering (AML) and counter-terrorist financing (CTF) procedures, risk management, client asset protection (where applicable), complaints handling, outsourcing arrangements, business continuity planning, IT systems and cybersecurity controls.
- Personal Documentation for directors, senior management, key function holders and qualifying shareholders (generally those holding, directly or indirectly, 10% or more of the share capital or voting rights), including: Curriculum Vitae (CV); Recent criminal record certificate; Certificate of non-bankruptcy (or equivalent, where applicable); Copies of identification documents and other due diligence documentation required by CySEC.
- Completed Regulatory Questionnaires and Personal Questionnaires for directors, senior management, key function holders and qualifying shareholders, in the form prescribed by CySEC.
- Evidence of Initial Capital, including confirmation that the applicant possesses, or will possess prior to authorisation, the minimum initial capital required by law and undertakes to deposit such capital with a credit institution established in an EU Member State, should CySEC so require.
The Commission must, within six months from the submission of a duly completed application for the granting of a CIF authorisation, reach a decision and inform the applicant for the granting of authorisation or rejection of the application.
During this six month period the Commission may request additional information or clarifications regarding the application submitted.
In order for a Company to offer Investment Services in Cyprus, it must apply to CySEC to obtain the relevant license to offer the following services:
Options for the future disposal or obtaining of any financial instrument, particularly currency and interest rate options as well as equivalent cash-settled instruments.
For more information about Cyprus Investment Firms please feel free to download our FACT SHEET No. 15 “Cyprus Investment Firms (CIF)”https://oxfordglobalservices.com/wp-content/uploads/2019/09/factsheet_15.pdf.