How to obtain Cyprus Investment Firm (CIF) License by CySEC: Benefits and Requirements

The Cyprus Securities and Exchange Commission (CySEC) is the independent public authority overseeing the investment services market, collective investment and asset management sector, and crypto-asset activities in Cyprus. CySEC aims to establish Cyprus as one of the safest, most reliable, and attractive investment destinations.

Benefits of Establishing Cyprus Investment Firm (CIF)

Establishing a Cyprus Investment Firm (CIF) offers several benefits:

1. Strategic Memberships: Cyprus’s memberships in the EU, Eurozone, Council of Europe, United Nations, World Bank, World Trade Organization, International Monetary Fund, and British Commonwealth.

2. Geographic Advantage: Proximity to three continents.

3. EU Passporting: Ability to provide investment services within the European Economic Area (EEA) through the EU passporting framework.

4. Attractive Tax Regime: One of the lowest tax regimes among EU member states, with over 60 double tax treaties.

5. Cost Efficiency: Competitive administrative, operating, and living expenses.

Investment & Ancillary Services

Cyprus Investment Firms can operate through various business models, combining investment and ancillary services tailored to their business plans and objectives.

Investment Services Include:

1. Reception and transmission of orders for financial instruments.

2. Execution of orders on behalf of clients.

3. Dealing on own account.

4. Portfolio management.

5. Investment advice.

6. Underwriting and placing of financial instruments on a firm commitment basis.

7. Placing of financial instruments without a firm commitment basis.

8. Operation of a Multilateral Trading Facility (MTF).

9. Operation of an Organised Trading Facility (OTF).

Ancillary Services Include:

1. Safekeeping and administration of financial instruments, including custodianship and cash/collateral management.

2. Granting credits or loans for transactions in financial instruments.

3. Advising on capital structure, industrial strategy, and related matters, including mergers and acquisitions.

4. Foreign exchange services linked to investment services.

5. Investment research and financial analysis.

6. Services related to underwriting.

7. Ancillary services related to derivatives as per the MiFID II Directive.

Regulatory Capital Requirements

Capital requirements vary based on the services included in the license:

– €75,000: For firms not holding client funds and offering services like order reception, transmission, execution, portfolio management, investment advice, and placing without a firm commitment basis.

– €150,000: For firms holding client funds and offering the above services.

– €750,000: For firms dealing on own account, underwriting, or placing on a firm commitment basis, along with the above services while holding client funds.

Licensing Timeframe

The CySEC licensing procedure typically takes around 8 to 12 months, depending on CySEC’s workload and the applicant’s promptness in providing required information and documentation.

Interested in establishing a Cyprus Investment Firm? Contact us at info@spencer-west.com or at [email protected] Our Investment Firms Licensing team is ready to assist you.