According to Cyprus Securities and Exchange Commission’s (“CySEC”) announcement dated 9th of July 2015, the process starting from the date of granting the authorization of a new firm until the date of its activation, is as follows:


1. Assessment of applications for granting of authorization in accordance to any relevant legislation.


2. The decision to grant authorization will be published on CySEC’s website with the reference (Non activated).


3. A letter will be sent to the authorized firm containing the conditions the firm must comply with before its activation. It should be noted that the firm will not be permitted to provide any type of services until it has fully complied with the conditions set by CySEC.


4. Non-compliance within any given timeframe will result to an automatic lapse of existing authorization, without the need for CySEC to commence any additional procedures.


5. Once the conditions for authorization are fulfilled, the firm is obligated, before it is activated, to notify CySEC in writing. Upon receipt of the notification, CySEC will proceed to carry out on-sight inspections at the firm’s registered office in order to assess the firm’s compliance with the authorization conditions.


6. The on-sight inspections will focus primarily on satisfying CySEC that the company has taken all required measures and has made all appropriate arrangements for the commencement of its activities, pursuant to the content of its application and the relevant law. For example:


(i)                 The firm has physical presence (registered office);

(ii)               Has employed the personnel as described in its application form and has met CySEC requirements – contracts of employment, filling of the organizational structure chart, reporting levels, assignment to third parties etc;

(iii)             The conditions for activation have been fulfilled (i.e. systems, control mechanisms, existence and details of bank accounts – client accounts, domains, agreements, leases, contracts etc.).


7. Following the on-sight inspection, and in case that CySEC is satisfied that the firm has fully complied with the authorization conditions, it will provide its consent for the firm’s activation and will update the relevant section of its website. 




For further information on this topic please contact

Ms. Maria Pitta ( at SOTERIS PITTAS & CO LLC,

by telephone (+357 25 028460) or by fax (+357 25 028461)


The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.