Financial Services Law

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Cyprus Financial Services Law 148(I)/2002 regulates the provision of financial services in Cyprus. A Cypriot company may operate in any other  Member State either directly or through the formation of a branch in accordance with the relevant EU Directives. For non-EU companies this may be viewed as an advantage, as they may extend their operations in Europe too. In this manner, Cyprus has become an attractive hub for financial services, because it can provide services throughout Europe with minimal requirements.

The Cypriot financial services sector includes domestic banks, International Banking Units (IBUs), insurance companies, and other companies that provide financial services. In Cyprus there are several foreign banks from the Middle East, Europe and Asia which operate subsidiaries, branches or representative offices.

The Cypriot banking & financial services  legislation is in line with international commercial practices. Its tax system is simplified, effective and transparent and fully EU, OECD, FATF and FSF compliant. Commercial banking mechanisms and practices are following the British model; all banks are able to use both traditional and specialised financial transactions, they support correspondent networks around the world.

Financial Services Law Expertise

Our specialised Financial Services Law Practice consists of a multidisciplinary team of lawyers, accountants and tax specialists from various banking, capital markets, investment services, fund services, insurance, corporate, tax, and real estate sectors. All of our professionals have several years of experience working with a wide range of financial services institutions, credit institutions, insurance companies, funds and investment services companies. Chetcuti Cauchi is positioned as advisors of choice due to our familiarity with the peculiarities of this industry coupled with our in-depth knowledge of local regulatory processes.

Investment Funds

Cyprus is an attractive investment funds jurisdiction, which provides solutions for the establishment of private and public investment funds (Alternative Investment Funds and UCITS), as well as fund managers.

Cypriot regulatory authorities have worked hard to bring the funds framework in Cyprus at a par with other international jurisdictions. These efforts include the transposition of the Undertakings for Collective Investment in Transferable Securities (UCITS) IV Directive in 2012 and the Alternative Investment Funds Managers Directive (AIFMD) in 2013. Cyprus offers a European passport to the fund management industry and great possibilities for cross-border and global fund distribution through the laws transposing these two directives.

Cyprus has a strong banking infrastructure with low costs while complying with EU fund regulations and the best international practices. Various service providers are servicing a wide range of funds and providing operational support and reporting solutions for all those funds in the EU as well as non-EU countries at competitive rates.

Capital Markets & Finance

Regional and global consolidations of business and financial markets and increased regulation are bringing important changes to the banking and financial services industries. Our experience in the banking, pensions and financial services law and our direct industry knowledge help us to asist and guide clients in a very efficient manner in this area.

Chetcuti Cauchi advises banks and financial institutions on regulatory, operational and traditional substantive law issues. The firm also provides expertise in the online delivery of financial products and services, particularly internet banking and online payment systems.

Forex License

Cyprus has an attractive tax regime, regulatory regime and is a member of the EU.  In view of this, Cyprus is a perfect jurisdiction for the incorporation and operation of FX.

It is becoming a very a common trend to set up regulated forex companies in Cyprus which can avail of Cyprus' favourable tax and regulatory regimes coupled with very low operating cost expenses.  

Insurance Law

Chetcuti Cauchi insurance practice is active in Cyprus in the field of insurance regulatory and contract law. The firm represents Cypriot and foreign-owned companies providing insurance services in Cyprus including insurance companies, brokers, agents, sub-agents and managers.

Investment Funds

In the last four years, Cyprus has become a main location for the establishment of funds among other popular jurisdictions. Cyprus offers a lot of opportunities in relation to the licensing of retail funds, UCITS, private schemes, specialist schemes, professional investor funds and unit trust funds.

Our firm is a specialised firm in Cypriot Investment Funds. Cyprus's role as a European hub for financial services has influenced various fund managers, fund administrators and investment advisors who have sought the highly stable and reputable Cypriot jurisdiction. 

Investment Services Law

Our Financial Services Advisory Practice Group is wide, as it enables our advisors to provide a variety of services ranging from licensing and compliance, corporate and personal tax, accounting, and project management. 

Our professionals are members of respected professional associations  such as Cyprus Institute of Taxation, Council of the Institute of Financial Services Practitioners (IFSP), various investment services, Society for Trusts & Estates Practitioners, Cyprus Institute of Accountants and the Chamber of Advocates.



Contact Us
Key Contacts

Dr Maria Chetcuti Cauchi

Senior Partner

+356 22056412