WHAT IS THE ROLE OF THE ASSOCIATION?
The Cyprus Fiduciary Association is a non for profit organisation that aims to serve the fiduciary providers by promoting their interests, supporting their operations and educating their staff. Our vision is to assist in creating a solid and strong fiduciary and wider international business sector in Cyprus, operating on high professional standards and integrity.
CFA is recognised as a representative body of Administrative Services Providers (ASPs) in Cyprus before public and regulatory authorities, other associations and the business community in Cyprus and abroad. The Association purports to cooperate with all bodies active in the international business sector of Cyprus in order to further develop the country’s services, advance the supervisory framework and promote it as a reputable international business centre.
WHAT SERVICES ARE CLASSIFIED AS “FIDUCIARY”?
The provision of fiduciary services in Cyprus is regulated by the Law Regulating Companies Providing Administrative Services and Related Matters (Ο Περί της Ρύθμισης των Επιχειρήσεων Παροχής Διοικητικών Υπηρεσιών και Συναφών Θεμάτων Νόμος του 2012) since December 2012.
As per the Law, the following services constitute Administrative Services, and anyone providing them should acquire a licence:
- The management or directing of trusts including, without limitation, the undertaking or provision of trustee (commissioner), wherever these are created or established, or the management or investment or marketing of assets of a trust.
- The undertaking or provision of the service of managing companies, including, but not limited, to the management or the managing of companies, general or limited partnerships, or other organisations with or without separate legal personality anywhere these may be registered or established and the provision of the following services:
- providing directors for legal persons;
- secretary, or assistant secretary of legal persons;
- holding the share capital of legal persons and registering the holder in the respective registers of shareholders on behalf of third persons;
- provision of address of registered office and or the official mail and or electronic address of companies;
- provision of general or limited partners in partnerships;
- provision of other similar services, or in conjunction with services described above, in relation to other legal persons or organisations, with or without separate legal personality;
- opening or managing bank accounts;
- safe keeping of financial instruments on behalf of clients, including acting as depositary, as defined in Annex III, Part II, paragraph 1 of the Investments Services and Activities and Regulated Markets Law, and other related services, unless this is provided as an ancillary service by an IF in the framework of the Investment Services and Activities and Regulated Markets Law.
More generally, fiduciary firms (Administrative Services Providers) offer the following services:
- Providing services with respect to formation and dissolution of companies
- Sale, transfer or disposal of companies
- Providing or arranging of premises for use as a registered office for a company
- Providing or arranging for accommodation address facilities for a company
- Acting or arranging another person to act as an officer of a company (including director, alternate director or secretary)
- Acting or arranging for another person to act as a nominee shareholder or nominee member of a company
- Providing administration services to a company
- Providing services with respect to the formation and dissolution of partnerships
- Providing administration of partnerships
- Providing services with respect to set up of CIFs, ICISs and UCITSs or other regulated Cyprus entities
- Provision of trustee and trust administration services
- Acting as a protector in relation to a trust
- Provision of accounting and book-keeping services
- Provision of tax and VAT compliance
- Providing services in relation to the opening and/or management and/or administration of bank accounts
- Providing services with respect to Information Technology hosting, data management, etc.
- Other Services: Statutory Audit & Legal Services (Drafting of legal documents, legal advice, litigation)
WHAT DOES “FIDUCIARY” MEAN?
The word fiduciary derives from the Latin fiducia, meaning “trust” and it refers to the relationship wherein one person has an obligation to act for another’s benefit.
The “fiduciary” (“trust”) can be a person or a business that looks after the assets on the other’s behalf (“trustee”) and is expected to act in the best interests of the person/company whose assets they are in charge of. This is known as “fiduciary duty”. The “fiduciary” manages the assets for the benefit of the other person rather than for his or her own profit.
WHO IS ELIGIBLE FOR BECOMING A MEMBER?
Cyprus Fiduciary Association is accepting membership from licenced and authorised Administrative Services Providers (ASPs) under all 3 (three) supervisory authorities in Cyprus:
- Cyprus Securities and Exchange Commission (CySEC)
- Institute of Certified Public Accountants of Cyprus (ICPAC)
- Cyprus Bar Association (CyBar)
In addition to their licence, for becoming a Member, ASPs need to have a Professional Indemnity Insurance, as well as a Directors & Officers (D&O) insurance cover. There is a 3-month grace period for all new members after their enrolment to settle the insurance requirements.
HOW DO I BECOME A MEMBER?
The prerequisites for becoming a member of the Cyprus Fiduciary Association are listed below:
- Complete and sign the “Application for Membership to the Cyprus Fiduciary Association” where you will provide basic information on your company. The form can be submitted online via our “Become a Member” portal or, you can e-mail us at firstname.lastname@example.org to send you the application on a pdf format.
- Pay the registration fee of €500.00.
DO YOU ACCEPT INDIVIDUAL MEMBERSHIPS?
The Cyprus Fiduciary Association does not accept individuals as members of the association but only legal entities.
WHAT ARE THE ANNUAL MEMBERSHIP FEES?
The annual membership fee for the year 2017 is €1,000.
Kindly note that the Cyprus Fiduciary Association provides a 10% discount to all its members that will settle their annual fee by January 31st 2017.
The first three (3) years of operations of CFA (2012-2014), the annual membership fee was €2,000. The 25% reduction in fees in 2015 and 2016 was the result of the decision of the Association’s Board of Directors for reducing the fees as the Association grows in number of Member-firms. With 83 CFA Member-firms by the end of 2016, the Board of Directors has allowed a further reduction to the annual membership fee down to the 50% of the initial 2012 amount.