The process of acquiring a Cyprus broker license is not a straightforward one and it is advisable to gain specialist knowledge prior to starting your FX broker application. This is to avoid any delays during the application process. Detailed information about the Cyprus forex broker license procedure can be obtained from a professional consultancy firm, which will help you to understand everything about Cyprus’ regulatory body and licensing procedures.
Cyprus offers a very positive environment to establish a forex broker firm within. It is a well established and respectable jurisdiction in regards to the issuing of a financial licensing. It follows very strict rules and regulations as implemented by the financial services authority of Cyprus (CySEC – The Cyprus Securities and Exchange Commission). Therefore, having a Cyprus forex license can prove to be a very positive investment, as it gives your traders the peace of mind that you are a fully licensed and regulated FX broker in an honest and reliable European jurisdiction.
Cyprus forex licenses are issued by the same body, CySEC. This is a highly stringent licensing and regulatory body, and is renowned for being one of the top licensing bodies in the world. Many of the world’s largest forex brokers hold a CySEC license. Without it, a Cyprus-based forex business will not be considered as a serious and professional institution.
Before CySEC was formed, the Central Bank of Cyprus was the main regulating and licensing body for investment firms. As Cyprus grew in popularity as an offshore business jurisdiction, the Central Bank of Cyprus struggled to cope with the issuing of licenses, and thus CySEC was established as a separate licensing institute. CySEC became the predominant licensing body for establishments that involved investment, foreign exchange and other similar firms.
Obtaining a CySEC license is a fairly complicated procedure and it is therefore advisable to obtain professional legal advice from a consultancy firm. To obtain a CySEC license you will need to have a company in Cyprus that is specifically formed for the purpose of providing forex activities. You will also need to have a minimum capital invested in a Cyprus bank, a special Memorandum and Articles of Association, as well as the full range of documentation required. This will include your company manuals for internal and external procedures, a full document that includes your compliance procedures, your fit and proper test details and your company business plan. Using a professional consultancy firm to guide you through the entire application procedure can ensure that you follow all the correct procedures and supply the correct documents to CySEC. Starting Business can help you to obtain your Cyprus CySEC license in a timely and efficient manner.
For information on how we can provide comprehensive consultancy on all areas of financial licensing in Cyprus, Contact Us.