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Regulation Of Fiduciary Services: Legislation Passed

Cyprus
In December 2012 the Cyprus legislation on the regulation of businesses offering management services and related subjects was finally published.

The legislation was welcomed by the majority of service providers, who see the regulations as a step forward in enhancing the level of quality in the provision of management services to private companies. This legislation means all entities providing fiduciary services in Cyprus will be obliged to be licensed by the relevant authority. Taxand Cyprus explains the requirements and the procedure for acquiring this licence.

Requirements for acquiring the licence

  • Head offices of the licensee is situated in the Republic
  • Persons that are directing the applicant or licensee must have the characteristics of honesty, expertise or/and professional qualifications
  • The licence will be provided only after the direct or indirect and real beneficial owners of the applicant are disclosed
  • The licensee must ensure the employment of persons with ethos, honesty, ability, knowledge and expertise required for that position

Procedure for acquiring the licence
An application is completed and forwarded to the Commission, which can be found on their website. The application is signed by the directors and is accompanied by:

  • Special questionnaire signed by the directors or the persons that are in fact directing the company
  • Confirmation of the Directors that the details provided are correct and truthful
  • Criminal record certificate and certificate of non-bankruptcy for the directors, the shareholders, the beneficial owners, if any and the compliance officer
  • The Memorandum and Articles of Association of the company, as well as certificates showing the directors, shareholders, beneficial owners, registered office and good standing of the company payment of the levy, as provided by the Commission.

Discover more: Cyprus passes legislation on the regulation of fiduciary services


Your Taxand contact for further queries is:
Eylem Philippou
T. +357 22 699 222
E. eylem.philippou@eurofast.eu

 

 

 

 

Taxand's Take


The legislation will be welcomed by service providers as it weeds out any 'rogue traders' and creates a higher quality of service for the end user. In the case a service provider is denied a licence, or the licence is revoked, the service provider is allowed to continue to operate for 6 months before closure is mandatory. Licensed persons are held in a Register which can be freely accessed by the public.

Taxand's Take Author