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Registration of an Investment Company – Forex in Cyprus

Michalaki, Pitsillidou Law Firm > English Articles  > Registration of an Investment Company – Forex in Cyprus

Registration of an Investment Company – Forex in Cyprus

Registration of an Investment Company – Forex  in Cyprus

Here at iMPK GLOBAL BUSINESS LAW FIRM – Cyprus Lawyers,

Any company wishing to be establishedas an FX trading (foreign exchange), has to be licensed by ‘Cysec’, the Cyprus Securities and Exchange Commission. FX Company in Cyprus provides benefits such as:

  • Low tax regime
  • Simple application procedure and,
  • Low application fees compared to other EU jurisdictions.

According to the Law of the Investment Services the Exercise of Investment Activities and the Operation of Regulated Markets and Other Related Matters (N. 144 (1)/2007, Article 10) – for a Forex Company in Cyprus the following are the requirements:

  1.  € 50,000 is the minimum capital requirement where it is not authorized to hold client money or securities, to deal for its own account, or to underwrite issues or on a firm commitment basis.
  1.   125,000 Initial capital (as a broker agent – STP):

 

This license allows the following:

       3.     € 730.000 as a Market Maker you will be able to act against the client.

iMPK GLOBAL BUSINESS LAW FIRM – Cyprus Lawyers, collaborates with you on the following:

  1. A company is being created in Cyprus
  2. Preparation and submission of the application
  3. Assistance in finalizing associates, procedures and manuals
  4. Obtain the license (within 3 months)

Measures to ensure investor protection

Moreover, there are some provisions to ensure investor protection. First, a CIF must, when providing investment and ancillary services to clients, act honestly, fairly and professionally in accordance with the best interests of its clients and comply, in particular, with the following principles:

  1. All information including marketing communications, addressed by a CIF to its clients or potential clients shall be fair, clear and not misleading.
  2. A CIF must provide to its clients or potential clients appropriate information in a comprehensible form about:
    1. The CIF and its services.
    2. Financial instruments and proposed investment strategies. This should include appropriate guidance on and warnings of the risks associated with investments in those instruments.
    3. Costs and associated with charges,

So that they are reasonably able to understand the nature and risks of the investment service and of the specific type of the financial instrument that are being offered and, consequently, to take investment decisions on an informed basis.

  1. A CIF must, when providing investment advice obtain the necessary information regarding on client’s or potential client’s knowledge and experience in the investment field relevant to the specific type of product or service, his financial situation and his investment objectives so as to be able to recommend the investment services and financial instruments that are suitable to its situation.

Certification of persons employed by a CIF

Persons employed by a CIF must be registered byin the public register. In addition, they provide the following:

  1. Reception and transmission of orders in relation to one or more financial instruments.
  2. Execution of orders on behalf of clients.
  3. Investment advice.
  4. Portfolio management.

For more information and guidance get in touch with our lawyers or email iMPK Global Business Law Firm – Cyprus Lawyers, at info@impklawyers.com .Tel. +357 99345000 – Fax +357 25 660097

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