The Cyprus Investment Firms Law 144(I)/2007 provides the legal framework for the provision of investment and ancillary services as well as specific provisions regarding capital requirements, the establishment of branches, authorization and supervision of Cyprus Investment Firms (CIFs).


For CySEC to grant CIF authorisation, a formal application procedure needs to be followed, and certain requirements must be met, the most important of which are stated below.

The board of directors of a Cyprus Investment Firm shall consist of at least two executive members and two independent non-executive members.  The management of a CIF must be undertaken by two persons (four-eye principle) who shall be of sufficiently good reputation and have sufficient experience as to ensure the sound and prudent management of the CIF.


CySEC requires to be informed of all shareholders, their shareholding and details of the ultimate beneficial owners. 

The investment services and activities which are regulated by the Law and subject to the granting of a license are the following:


Investment Services


·         Reception and Transmission of orders in relation to financial instruments

·         Execution of orders on behalf of clients,

·         Dealing on own account

·         Portfolio Management

·         Investment Advice

·         Underwriting of financial instruments

·         Placing of financial instruments

·         Operation of Multilateral Trading Facility


The CIF may also offer a range of the below regulated non-core activities:


Ancillary services:


·         Safe keeping and administration

·         Safe-custody,

·         Granting credits or loans,

·         Provision of professional advice on capital structures industrial strategy etc.

·         Foreign Exchange services.

·         Investment Research and financial analysis.

·         Services related to underwriting


It should be noted that no license is granted for the operation of a CIF in relation to the provision of ancillary services only.

Upon amendment of the Law144(I)/2007, the requirements for the initial capital of the CIFs has been amended as follows:


1. The minimum initial capital for a CIF holding client’s assets and providing one or more of the following is €125.000:

Reception and transmission of orders
Execution of orders on behalf of clients
Portfolio management


2. The minimum initial capital for a CIF providing reception, transmission or execution of orders and/or investment advice without handling clients’ assets is €50.000.


3. The minimum initial capital for a CIF providing and/or conducting one or more of the following is € 730.000:


Dealing on own account
Underwriting/placing of financial instruments on a firm commitment basis
Operation of Multilateral Trading Facility
Placing of financial instruments without a firm commitment basis.


Our firm can help by incorporating the entity to be licensed, preparing the various documents (Memorandum and Articles, Business Plan, Internal Manual Procedures, AML Manual, questionnaires, application and information document), submitting on your behalf to CySEC the application package, following up the processing and promoting your application with Cyprus Securities and Exchange Commission and activating the license by submitting to the regulatory authorities the supplementary information required.


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.


Monday, 28 December 2015 10:22

Cyprus: Guidance for Cyprus Courts on the duties owned by directors of a company to the shareholders   In a recent decision by the High Court of the United Kingdom, the court...

Tuesday, 22 December 2015 17:29

Cyprus: Taxation – Amendments on the Double Tax Treaty between the Republic of Cyprus and Ukraine   Representatives of the Cyprus and the Ukrainian governments have signed, in...

Monday, 14 December 2015 14:53

CYPRUS: Guidance by the Supreme Court of Cyprus on “mens rea” for bounced cheques In October 2015 the Supreme Court made a remarking judgment which overturned the decision of the First-instance...

Wednesday, 09 December 2015 09:53

CYPRUS: Double Tax Treaty between Cyprus and Swiss Confederation On 15th October 2015, the Double Tax Treaty between the Republic of Cyprus and Swiss Confederation had entered into force (the...

Monday, 07 December 2015 16:40

Cyprus: New Procedure for Issuing a Tax Residency Certificates   Tax Department, has recently issued a circular in relation to the applications for the issuance of tax residency certificates. For...

Friday, 27 November 2015 08:47

CYPRUS: NO CAPITAL GAINS TAX FOR IMMOVABLE PROPERTIES PURCHASED UNTIL THE END OF THE YEAR 2016   By a recent amendment of the Capital Gains Tax Law, Cyprus has abolished the payment of any Capital...

Monday, 23 November 2015 10:53

Tied Agents   A tied agent means a person established in a Member State, who, acting under the full and unconditional responsibility of only one Investment Firm of a Member State...

Friday, 20 November 2015 10:04

Cyprus: Possible guidance from the English Courts on the Interpretation of jurisdiction clauses as “exclusive”   During the past years English courts have been willing to...

Wednesday, 18 November 2015 13:09


Friday, 30 October 2015 12:54

Cyprus: A possible amendment in the Law of Social Insurance Debtors   In Cyprus over the last years around 300 people received an imprisonment sentence for debts in relation to...

Thursday, 29 October 2015 10:28

Cyprus: Will the proposed amendment in relation to the reduction of Judges in Family Courts solve the real issues that affect the quick adjudication of Family cases?   Due to the...

Friday, 23 October 2015 12:24

CYPRUS: SERVICE OF COURT DOCUMENTS UNDER REGULATION (EC) 1393/2007    In a case involving service of court documents in a Member State pursuant to Regulation (EC) 1393/2007, the...

Wednesday, 21 October 2015 16:59

CYPRUS: APPOINTMENT OF RECEIVER IN AID OF EQUITABLE EXECUTION OF CYPRUS JUDGMENT   In a recent case handled by our firm, we succeeded acting on behalf of a Claimant to obtain a...

Tuesday, 20 October 2015 13:19

Cyprus : Supreme Court has ruled in favour of Speed and Efficacy in the spirit of judicial cooperation   In the case of Alpha Bank Cyprus Ltd v. Andrew Timothy Popple in March 2015...

Monday, 19 October 2015 16:43

CYPRUS: Strengthening protection on money laundering by the Introduction of the Fourth Anti- Money Laundering Directive     Flows of illegal money can damage the...

Tuesday, 13 October 2015 08:54

The International Court of Arbitration of the International Chamber of Commerce to communicate reasons for its decisions     The ICC Court is a leading centre for resolution...

Monday, 05 October 2015 09:12

A fight against corruption by the proposed introduction of Criminal Record Certificates for Companies   Due to existing problems with regards to companies competing for the undertaking of public...

Wednesday, 30 September 2015 10:36

THE EXAMINERSHIP - Amendments to the Cyprus Legislation     The Companies Law, Cap.113 as amended by the 89(I)/2015, 63(I)/2015 and 62(I) 2015introducedthe examinership...

Wednesday, 23 September 2015 09:24

CYPRUS TAX. AMENDMENTS EXPECTED TO ARRIVE IN AUTUMN 2015.   A. Income Tax Treatment of Forex It is proposed that as of 1st January 2015, exchange differences, whether losses or...

Thursday, 10 September 2015 13:30

  Changes to the Inheritance process under European Succession Regulation 650/2012     The growing importance of cross border successions within the European Union...

Wednesday, 09 September 2015 15:35

Renewal and Amendment of the Double Taxation Treaty between Cyprus and...

Tuesday, 01 September 2015 12:25

ACTIVATION OF A CIF AUTHORISATION   According to Cyprus Securities and Exchange Commission’s (“CySEC”) announcement dated 9th of July 2015, the process starting...

Tuesday, 01 September 2015 12:23

RECENT DEVELOPMENTS IN CYPRUS DTT NETWORK   Cyprus- Bahrain (DTT signed in March 2015)   In pursuit of strengthening the ties with all Gulf countries, on 9 March, 2015...

Tuesday, 01 September 2015 12:16

CYPRUS INVESTMENT FIRMS (CIFs)   The Cyprus Investment Firms Law 144(I)/2007 provides the legal framework for the provision of investment and ancillary services as well as specific...

Wednesday, 19 August 2015 08:55

The establishment of a New Administrative Court in Nicosia, Cyprus               The legislative body of the Republic of Cyprus introduced the Law...

Thursday, 06 August 2015 09:43

The Approval of a Bill relating to the Sale of Loans   A bill under the name “Lawregulating the activities of portfolio investor companies of 2015”, has been drafted by...

Thursday, 23 July 2015 09:41

Recent Amendments to Cyprus Tax Regime   On the 9th July 2015, Cyprus Parliament passed number of new laws, which purport to make Cyprus a more attractive investment destination. The Laws are...

Monday, 20 July 2015 12:30

Cyprus –Immovable Property     ‘Parliament to submit law addressing the issue of Title Deeds and Hidden Mortgages’   One of the major problems...

Thursday, 16 July 2015 09:31

The Law amending the Companies Law CAP 113 N.4 [89(I) /2015] and collectively (the ‘Law’) came into force on 19 June 2015 and brought with it several changes to the current legal...

Monday, 30 March 2015 12:38

EU PASSPORT   Scheme for Naturalisation of Investors in Cyprus     The Council of Ministers of the Republic of Cyprus, on 19 March, 2014, revised the criteria for providing Cypriot citizenship...

Tuesday, 24 March 2015 09:02

The new features under the Recast Regulation 1215/2012     The significance of the EU Regulation 44/2001 is well known as its rules determine both the jurisdiction of courts in the EU in civil...

Monday, 02 February 2015 12:50

Lis Alibi Pendens under the Council Regulation (EC) No 44/2001 on jurisdictionand the recognition and enforcement of judgments in civil and commercial matters   Lis Alibi pendens is Latin for...

Thursday, 22 January 2015 02:00

  Deoffshorization Law in Russia and possible solutions for the CFCs in Cyprus   The Federal Law No 376-FZ dated 24 November 2014 “Concerning the Introduction of Amendments to Parts One and Two of...

Subscribe to our Publications

We are dedicated to providing our clients with outstanding, highly personalized, legal representation.
Chrysanthou Mylona 10 
3030 - Limassol, Cyprus
© Soteris Pittas & Co LLC. All Rights Reserved.