What is economic substance?

Setting up Office

An Introduction to Economic Substance: What is it, and why is it important The 2013 financial crisis altered the global tax landscape, with many countries moving towards greater transparency and additional measures put in place to combat tax evasion and tax avoidance. Many countries, through the exchange of information with their foreign counterparts, have increased…

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Cyprus Beneficial Ownership Register and other highlights of the amendments the 5th AMLD

Each member state in the EU should have transposed the 5th Anti Money Laundering Directive (AMLD) into national legislation by the 10th of January 2020. By making significant changes to the existing regulatory framework, EU member states aim in becoming more reactive to the continually evolving threat of Money Laundering and Terrorist Financing.  Furthermore, the AML 6th Directive is…

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Provision of Warnings in Spain – C248

Following Circular C210 CySEC issues Circular C248 – Requirements of the Spanish Securities and Exchange Commission (‘the CNMV’) regarding the provision of warnings on complex financial instruments to retail clients resided in Spain, expanding on the requirements for mentioned warnings when providing services to clients within the territory of Spain. In summary a CIF must:…

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Regulation on Virtual Currencies – C244

As in accordance with CySEC Circular 244 – Trading in virtual currencies and/or trading on contracts for differences relating to virtual currencies, CySEC sets preliminary regulatory requirements regarding the trading of virtual currencies or related contracts of differences in anticipation of the official position of European authorities. It should be noted that there is no specific EU…

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Remuneration Guidelines – C240

With Circular C240 – Guidelines on sound remuneration policies issued by the European Bank Authority, CySEC draws the attention of Cypriot Investment Firms to Guidelines on sound remuneration policies – EBA/GL/2015/22. CIFs must comply with the regulatory requirements and design sound remuneration policies and that do not raise conflict of interest between CIF’s clients and CIF’s personnel…

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New Marketing Condition in Latvia – C239

In accordance with Circular 239 – Financial and Capital Market Commission of Latvia (the “FCMC”) – Law on the Financial Instruments Market regarding the natural and legal persons that are allowed to provide/ perform investment services/ activities in the Republic of Latvia, CySEC informs Cypriot Investment Firms to adjust their business models to include new specifications when soliciting clients…

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New Passporting Guidelines – C233

With the issue of CySEC Circular 233 – MiFID II Main changes in relation to passporting issues and new notification forms, CySEC draws the attention of Cypriot Investment Firms to the new conditions required under MiFID II for the cross-border provision of their products and services to member states. Under MiFID II Investment Firms are…

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New Capital Requirements for Financial Assets situated in Estonia – C222

As in accordance with Circular 222 – Decision of the Cyprus Macroprudential Authority (Central Bank of Cyprus) concerning Recommendation ESRB/2016/4 of the European Systemic Risk Board with regard to the adoption, via reciprocity, of a macroprudential measure adopted by Estonia, CySEC informs Cypriot Investments Firms of Central Bank of Cyprus decision to impose 1% (one percent)…

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The Risk Factors Guidelines for AML processing – C219

As in accordance with Circular 219 – ESAs Guidelines on anti-money laundering and countering the financing of terrorism – ‘The Risk Factors Guidelines’Use of Affiliates, when CIFs process clients for anti-money laundering, and counter terrorist financing, they must classify then using a risk-based approach in their assessment and categorize them accordingly. From 26 June the new…

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