At a summary, an application can be filled with the Cyprus Securities and Exchange Commission (CySEC) for the following investment and ancillary services:
- Reception and transmission of orders in relation to one or more financial instruments;
- Execution of orders on behalf of investors/clients;
- Dealing in financial instruments 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 (includes custodianship and related services such as cash-collateral management);
- Granting credits or loans to an investor (to allow investors 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 (relating to capital structure, industrial strategy and related matters and consulting, and services in relation to mergers and the purchase of undertakings);
- Foreign Exchange services (in cases when they are connected to investment services);
- Investment research and financial analysis (relating to transactions in financial instruments);
- Services relating to underwriting.
Share Capital:The share capital for the applicant Company must be fully paid up (at the latest stage of the CIF application). The necessary share capital for investment services is:
EURO 125,000 for:
- Reception & Transmission
- Execution of orders on behalf of clients
- Portfolio management
- Investment advice
EURO 730,000 for (in addition to the above):
- Dealing on own account (market maker)
- Provision of underwriting services in respect of issues of financial instruments
Requirement for the application:The application needs to be followed by an internal operations manual, a business plan, a policy manual and anti-money laundering procedures in order for these to comply with the requirements of CySEC.
Personnel:The following experienced personnel, who must be approved by CySEC as persons having the reputation and knowledge to hold their respective positions, must be in place:
- 4 directors including managing director, two executive and two non-executives, 3 of them must be Cyprus residents;
- Money laundering, risk manager and compliance officer;
- Internal auditors (Cyprus resident);
- External auditors;
- Legal consultants.