Brokerage License in Cyprus

Legal support for obtaining a license (including Forex STP and Market Maker licenses) is necessary to ensure that the applicant’s package of documents meets the requirements of the legislation of Cyprus, and the company’s activities meet the existing requirements of the regulator.

Since 2001, the Cyprus Securities and Exchange Commission (CySEC) has licensed financial activities in Cyprus.

Since 2004, Cyprus has been a member of the European Union, which allows a company licensed to broker in Cyprus to certify  (activities in the territory of the EU Member State upon notification) its services in the EU territory, and Iceland, Norway and Liechtenstein. In 2012, CySEC became the first regulatory body to regulate binary options as a financial instrument.

Advantages of obtaining a brokerage license in Cyprus

1. Cyprus is a member of the EU. Obtaining a license allows you to carry out financial activities in all territories of the European Economic Area (in accordance with the EU Directive of 2004 “On the markets of financial instruments” (MIFID));
2. One of the lowest income taxes in the EU – 12.5% (transactions in the territory of Cyprus) and 0% (transactions outside the country).
3. Cyprus financial regulation legislation is harmonized in accordance with EU directives and contains a number of harmonized and confirmed requirements for licensees. Legally regulated binary options and Forex;
4. For foreign employees of the company, there is no income tax; 5. Relatively fast and inexpensive procedure for obtaining a license Forex broker.

Legislation regulating brokering activities in Cyprus: EU Directive 2004 “On Markets for Financial Instruments” (MIFID),  Cyprus Investment Services and Activities and Regulated Markets Law of 2007.

Licensing procedure for brokering activities in Cyprus

The applicant must prepare and submit a package of documents to CySEC.  The applicant’s company must meet the following requirements:

• The office of the investment company should be located in Cyprus, and the main activities of the company should be carried out in Cyprus;
• The company must pay the required contribution through the Central Bank of Cyprus – the final amount depends on the range of services provided. In addition, a fee must be paid for membership in the Association of International Investment Firms of Cyprus (ACIIF);
• In order to obtain a brokerage license in Cyprus, you need to submit a certificate from the bank confirming the existence of an account;
• The presence of an anti-fraud and anti-money laundering specialist (Compliance officer), a risk manager, as well as an internal auditor in the staff of the company. Also, the company must have a Board of Directors, a secretary, an accountant, heads of brokerage, financial and IT departments, traders. Some positions may be combined, but are required qualification for persons in the position of director;
• Business plan of the company;
• Three-year plan for a financial company;
• The brokerage company should prepare a Policy on Fraud and Money Laundering as well as a KYC Policy (“Know your customer”);
• Certificate of absence of criminal record of each employee in a management position;
• Information about the absence of bankruptcy status for each employee in the management position;
• CySEC must make sure that the applicant company has the authorized capital. The amount of the authorized capital depends on services provided by:
  • investment consultant – 50, 000 euros
  • broker-agent – 125, 000 euros
  • liquidity provider (market maker) – 725, 000 euros

The Securities and Exchange Commission of Cyprus is obliged to make its decision within 6 months after receiving the application – if all necessary documents are submitted correctly, the licensing process lasts no more than 4 months.

Regulated United Europe provides full legal support in obtaining a brokerage license in Cyprus, including registration of the company, preparation, translation and certification of the package of documents, negotiation with representatives of CySEC, and consulting the client at all stages of licensing. The cost of implementing your project depends on the offered services and is clarified and agreed with the lawyers of our company during the initial analysis of your project.