Obtain a Forex licence in Cyprus
Obtain a Forex license in Cyprus- Cysec
The Law 144(I)/2007, provides the provision of Investment Services, the exercise of Investment activities, the operation of regulated Markets and other related Markets.
“Investment Firm” or “IF” means a person that operates under an authorization granted by the Cysec, (the authority) and provides one or more investment services to third parties or/and performs one or more investment activities on a professional basis, and includes a CIF.
Conditions for granting a CIF Authorization
- Prior authorization by the Cysec
- The Commission shall not grant a CIF authorization if it is not fully satisfied that the company that has been established in the Republic and is applying for a CIF authorization
- The applicant shall provide all the information necessary to enable the Commission to satisfy itself that the applicant has taken
- The CIF authorization is valid in all member states and shall allow the CIF to provide the services or/and perform the activities, for which it has been authorized, in all the member states, either through the establishment of a branch or the free provision of services or performance of activities
Cyprus Investment Firms Initial Capital
- A CIF that provides or more of the following investment services and holds clients’ money or/and client’s financial instruments must have an initial capital €730.000:
- The reception and transmission of orders in relation to financial instruments
- the execution of orders on behalf of clients
- portfolio management
- provision of investment advice
- A CIF that provides the abovementioned investment services and does not hold clients’ money or/and clients’ financial instruments, and which for that reason may not at any time place themselves in debt with their clients, may have an initial capital of:
- At least €80.000 or
- at least €40.000 and professional indemnity insurance covering all member states or some other comparable guarantee against liability arising from professional negligence, that it enters into with an insurance undertaking, representing an amount of at least €1.000.000, per claim, and in aggregate at least (€1.500.000) per year for all claims.
- A CIF that provides one or more of the following investment services or/and performs the following investment activities shall have an initial capital of at least (€1.000.000):
- Dealing on own account
- underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis
- placing of financial instruments without a firm commitment basis
- A CIF that is also registered under the Insurance Services and other Related Issues Law to provide insurance intermediary services in the insurance sectorand in addition must have an initial capital of:
- At least €40.000 or
- At least €20.000 and professional indemnity insurance covering all member states or some other comparable guarantee against liability arising from professional negligence, that it enters into with an insurance undertaking, representing an amount of at least €500.000, per claim, and in aggregate at least seven hundred and €750.000 per year for all claims.