The Regulation of Undertakings Providing Administrative Services (Fiduciary Services) to Private Companies and Related Matters Law of 2012
The long awaited Law has finally been enacted, so when a fiduciary business is asked,
‘Are you regulated and if so by whom?’ the business can confidently reply,
‘Yes, by the Cyprus Securities and Exchange Commission (CySEC).’
What advantages Does This Law Bring To The Industry?
Well, in the eyes of the law and the rest of the world the fiduciary business can now hold their heads up high, for it has automatically upgraded the Cypriot professional services sector.
Through
a) its license and registration regime and CySEC supervision,
b) its reporting requirements, its requirement to have persons of honesty and experience, academic or professional qualifications, and
c) its protection of confidential information and prevention of money laundering, etc.
the Law has provided a clear framework of operation, it has enhanced protection for both the industry and its clients and has promoted Cyprus reputation.
CySEC and Supervision
The number of fiduciary/corporate service providers in Cyprus has risen exponentially in the last 10 years, this has left potential clients looking for recommendations by word of mouth for the right provider and been left to flounder with any complaints that they may have had.
A register of licensed providers will now be available through CySEC and any complaints will be dealt with by them.
Supervision is expected to be in the form of inspections.
Conclusion
Submission of applications by fiduciary businesses are under way and review of these applications are also presently being carried out but could take up to a year.