The Cyprus Securities and Exchange Commission ("CySEC") has circulated a further draft of the Regulation of Fiduciaries, Administration Businesses and Company Directors Law for comment by interested parties. The first draft was issued for consultation in 2006 by the Central Bank of Cyprus and a number of amendments have been made in the intervening period in order to arrive at an effective law meeting the needs of stakeholders. In addition, responsibility for the law and for regulation of fiduciary service providers has passed from the Central Bank of Cyprus to CySEC.
Unlike previous versions, the latest draft law excludes registered legal firms, auditors and banks from its scope unless they opt to be regulated under it. This change is in response to representations from such organisations that they are already subject to their own rigorous regulatory arrangements and that a further layer of regulation would be unnecessary and burdensome. The application process has been simplified and the application fee set at €2.000. CySECmay request further information on an applicant if it considers it appropriate. The main regulatory focus will be the prevention of money laundering. CySEC will not publish authorisations but will maintain a register of approved service providers.
The consultation period ends on 1 February 2011 and it is hoped that the current draft will prove acceptable to all stakeholders and that it will be enacted and in force in the next few months.