The investment management sector is developing rapidly in Cyprus, with the number of licensed Cyprus Investment Firms (CIFs) currently amounting to more than 150. Recent trend includes the licensing of a growing number of FX brokers. The existing legal and tax framework makes Cyprus an attractive place for establishing a CIF, as it offers the lowest corporate tax rate in the EU as well as a “single passport” to provide investment services across the EU.
In an ever-changing regulatory environment, a CIF which operates under an authorisation granted by the Cyprus Securities and Exchange Commission (CySEC) will be faced with the challenge of adapting to new regulation whilst also having to react to the new economic reality. Investment Firms' desire for growth in domestic and new markets is being met by an increased focus on regulation and transparency. The Foreign Account Tax Compliance Act ("FATCA"), the European Market Infrastructure Regulation ("EMIR"), the Markets in Financial Instruments Directive II ("MiFID II"), Capital Requirements Directive IV ("CRD IV"), the Anti-Money Laundering and Combating the Financing of Terrorism, and other relevant regulations, present both a challenge and an opportunity for the sector.
PwC has wide experience in this field, as since 2004 we have assisted a large number of CIFs in their effort to obtain an authorization from CySEC, to “passport” their license to other EU jurisdictions and to comply with local legislation and CySEC’s directives. We are also acting as the internal auditor for a large number of CIFs. We have a dedicated team of subject matter experts in assurance, tax, regulatory compliance, process improvement, financial reporting, etc which are assisting clients, through this broad range of services, to comply with their regulatory obligations
PwC’s leading position as a provider of services to CIFs, gives you the advantage to talk to people who are experts not only in their specific field but in your industry as well. Our service offering includes: