Istos Global
News Details
LATEST TAX NEWS
New Laws voted by the Cyprus Parliament
New Law was enacted governing the provision of fiduciary and corporate services
NEWSLETTER

Subscribe to our email list to receive our latest news and articles

CONTACT DETAILS

Istos Global Limited

Tel: +357 22256324
Fax: +357 22256410
Emai: info@istosglobal.com

 

New Law was enacted governing the provision of fiduciary and corporate services
Saturday, April 13, 2013
 

 

Cyprus Parliament enacted the law on the Regulation of Fiduciaries, Administration Businesses and Company Directors, which transposes the provisions of Directive 2005/60/EC into national law.

 

The law applies to persons and companies providing relevant fiduciary and other corporate services relating to the administration or management of trusts and companies in or from Cyprus, including:

 

1.       Services such as holding of shares of legal persons as a nominee or trustee;

 

2.       Directorship and secretarial services provided by a legal person, including acting as an alternate director or secretary;

 

3.       Provision of a registered office;

 

4.       Services for the ownership of financial assets on behalf of third parties; and

 

5.       Services related to the opening and operating bank accounts.

 

The principal objectives of the new law are to strengthen the confidence in the sector, to regulate the provision of relevant services, to establish and impose licensing procedures for and supervision of such services and finally to offer security to clients.

 

The new law provides that relevant services may be offered only by persons or legal entities that hold a license from CySEC or who are specifically exempted from the licensing requirement. Accountants and lawyers who are regulated by their respective regulatory bodies are exempt from the need to obtain a license.

 

A register of license holders will be maintained by CySEC and licenses may be issued on such terms and conditions as CySEC considers appropriate. In order to obtain a license, providers of relevant services must comply with certain criteria regarding their professional and academic qualifications, experience and their internal procedures.

 

In order to obtain a license a service provider must satisfy the following requirements:

1.       Its head office must be located in Cyprus;

2.       It must be represented and administered by at least two persons, who must have the appropriate academic and professional qualifications, expertise and integrity to manage it competently and prudently.

3.       It must employ an in-house lawyer or maintain a regular professional relationship with an external lawyer.

4.       It must employ a compliance officer or externally engage these services.

5.       Regulated service providers must put in place appropriate internal control procedures in order to ensure that they have accurate, up to date information at all times, in compliance with the law.

 

All providers of trustee services are required to obtain the following information regarding trusts they administer and keep it available at all times for disclosure to CySEC:-

1.       Identity of all trustees;

2.       Identity of the settlor;

3.       Identity of the beneficiaries or information on the class of beneficiaries;

4.       Identify of any protector;

5.       Identity of the investment manager, accountant and tax consultant (as may be applicable); and the business of the trust.

 

At any time, CySEC may request a license holder to provide any information or documentation that is reasonably required for conducting its supervisory role and, in the event of non-cooperation on the part of the license holder, may confiscate for up to 45 days any registers, accounts, books, documentation or electronic devices used for the transmission of data.

 

Contravention of the law is a criminal offence punishable on conviction by imprisonment of up to five years, a fine of up to €350,000 or both. If the offence was committed by a legal person, then any of its directors, managers or responsible auditors may be liable if it is proved that he or she agreed or assisted in the commission of the offence. CySEC may also impose an administrative fine of up to €500,000 (or up to €1 million for repeat offences), depending on the seriousness of the offence.

 

Should you require more information regarding the above please to do not hesitate to contact us at: info@istosglobal.comor +357 22 256324.


Get Social:
Our PhilosophyOur People
Audit and Assurance ServicesTax ServicesFinancial Advisory ServicesGlobal Compliance ServicesTraining Services
Cyprus Tax System
Tax NewsBusiness News