N. Pirilides & Associates LLC provides a complete range of consulting/advisory services for the establishment, licensing and operation of Investment Firms in Cyprus. Our experienced team guarantees successful implementation of your aim to acquire an EU passport through obtaining a license to operate as an Investment Firm from the Cyprus Securities and Exchange Commission (CySec).
In brief our services include:
- Establishing a Cypriot Company
- Complete application process to obtain CySec authorization to operate as a Cypriot Investment Firm (including FX Brokerage Firms)
- After license Legal and Accounting support
- Internal Audit services
- External Audit services
- Compliance and Anti-Money Laundering services
MiFID allows investment firms (IFs) to operate throughout the EU on the basis of authorisation in their home Member State (the single passport).
The cross-border provision of investment services becomes easier through the so-called passport. Providers of investment services are able to offer their services in other markets in other EU member states. For example an IF granted authorization from the Cyprus regulatory authority (Cyprus Securities and Exchange Commission) may offer the services covered in its license in other member states either by establishing a branch or without establishment (free provision of services). No authorization by the other country's supervisory authority is required.
Authorisation and establishment of Cypriot Investment Firms
Our experienced team can implement the complete authorization process in the most cost effective way. Our professional approach guarantees the preparation and submission of a complete and comprehensive application file in accordance with Cyprus Securities and Exchange Commission (CySec) regulation so as to obtain the license in the minimum possible time. Our services include:
1) Advising on selecting the proper form of presence in Cyprus
- Cypriot Investment Firm (CIF)
- Branch of the Investment Firm (I.F.) of the home company
2) Preparation of a complete application file which among others includes:
- Advice on the most cost effective organizational structure based on your specific needs
- Preparation of the Internal Procedure Manual based on your specific needs
- Preparation of the Risk management and procedures manual regarding money laundering and terrorist financing
- Preparation of the Business Plan
- Completion of all relevant Cyprus Securities and Exchange Commission (CySec) application forms
- Advice and review relevant questionnaires of shareholders, directors and head of departments
- Step by step advice for the collection of all required documents/certificates of applicant, shareholders, directors and head of departments
- Follow up and response to CySec questions up to obtaining the license
3) CIF registration after authorization
4) Suggesting qualified directors & staff
5) After granting of the license we offer:
- Legal support
- Accounting support
- Training courses
- Internal and External Audit services
- Compliance and Anti-Money Laundering support
- Consulting/Advisory services concerning Compliance with existing Law and Regulations
- Consulting/Advisory services concerning Operational requirements
- Consulting/Advisory services concerning KYC and Anti Money
6) Laundering procedures
- Consulting/Advisory services concerning proper application of internal procedure manual
- Consulting/Advisory services concerning implementation of possible new Laws/directives/Circulars from CySec
- Training of personnel concerning compliance/AML issues
- Training of personnel concerning proper implementation of Internal Procedure Manual
- Review on a yearly basis or when legislation comes into force of AML Manual and updating if required
- Review on a yearly basis or when legislation comes into force of Internal Procedure Manual and updating if required
- Review and advice on reporting/correspondence with regulatory authorities
- Consulting/Advisory services concerning continuous obligations
- On site personnel for compliance/KYC/AML assistance
- Any special assignment (investigation, due diligence etc) on request
Investment services and activities
- Reception and transmission of orders in relation to one or more financial instruments.
- Execution of orders on behalf of clients.
- Dealing on own account.
- Portfolio management.
- Investment advice.
- 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.
- Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management.
- Granting credits or loans to an investor to allow him to carry out a transaction 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 the purchase of undertakings.
- Foreign exchange services where these are connected to the provision of investment services.
- Investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments.
- Services related to underwriting.
- Investment services and activities as well as ancillary services related to the underlying of the derivatives included under (5), (6), (7) and (10) of Financial instruments where these are connected to the provision of investment or ancillary services.
- A company CANNOT apply to the Commission for a license to offer ONLY Ancillary Services
- For a Company to offer Investment Services and Activities (1-8 above) must have a license from the Commission
- If a Company offers ONLY Ancillary Services then NO authorisation is required.
- If a Company wants to offer both Investment Services and Activities AND Ancillary Services then needs authorisation for both type of services.
- A CIF is prohibited from conducting any other activities, beyond the services and/or activities stated in its authorisation, except if it has received the Commission's permission
Kinds of Financial Instruments
- Transferable securities (which are negotiable on the capital market)
- Money-market instruments (such as treasury bills, certificates of deposit and commercial papers)
- Units in collective investment undertakings
- Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash.
- Options, futures, swaps, forward rate agreements and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event).
- Options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market and/or an MTF.
- Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in (6) and not being for commercial purposes, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are cleared and settled through recognised clearing houses or are subject to regular margin calls.
- Derivative instruments for the transfer of credit risk.
- Financial contracts for differences (CFDs)
- Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event), as well as any other derivative contract relating to assets, rights, obligations, indices and measures not otherwise mentioned above, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market or an MTF, are cleared and settled through recognised clearing houses or are subject to regular margin calls.