Cyprus Investment Firm (CIF) authorisation (Cyprus)
The Cyprus Investment Firm (CIF) authorisation is issued by Cyprus Securities and Exchange Commission (CySEC) under The Investment Services and Activities and Regulated Markets Law of 2017 (Law 87(I)/2017). It can be passported to the other EU/EEA states by notification. The official register lists 248 current holders. The legal decision period is 6 months from receipt of a complete application. Ownership changes need the regulator's approval before completion.
At a glance
| Official name | Cyprus Investment Firm (CIF) authorisation1 |
|---|---|
| Also known as | CIF · CIF licence · Cyprus STP broker licence · Cyprus market maker licence · Cyprus forex licence |
| Issued by | Cyprus Securities and Exchange Commission |
| Jurisdiction | Cyprus |
| Licence family | Investment firm / broker-dealer |
| Legal basis | The Investment Services and Activities and Regulated Markets Law of 2017 (Law 87(I)/2017)2 The Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2009 (Law 73(I)/2009)3 The Alternative Investment Fund Managers Law of 2013 (Law 56(I)/2013)4 |
| Passporting | EU/EEA passport available |
| Application fee | EUR 7,000 lump sum for core investment services (paragraphs 1-7 of Part I, Annex I of Law 87(I)/2017), plus EUR 25,000 for operating an MTF/OTF, EUR 500 per ancillary service, and EUR 2,000 if engaging in algorithmic trading5 |
| Annual fee | Fixed annual fee between EUR 5,000 and EUR 10,000 (depending on initial capital category), plus turnover surcharge above EUR 500,000 (0.75% up to EUR 1M, decreasing to 0.0975% above EUR 10M, capped at EUR 150,000 total), plus EUR 3,000 for CFD providers and EUR 2,000 for algorithmic trading5 |
| Statutory decision time | 6 months from receipt of a complete application2 |
| Public register | official register1 |
| Current holders | 2481 |
What it lets you do, and where
Activities it covers
| Reception and transmission of orders | Receiving client orders in financial instruments and passing them to another firm for execution. |
|---|---|
| Execution of orders on behalf of clients | Concluding agreements to buy or sell financial instruments on behalf of clients. |
| Dealing on own account | Trading financial instruments against proprietary capital, which includes acting as counterparty to client trades. |
| Portfolio management | Managing client portfolios that include financial instruments on a discretionary, client-by-client basis. |
| Investment advice | Giving personal recommendations to a client about one or more transactions in financial instruments. |
| Underwriting or placing on a firm commitment basis | Guaranteeing the sale of an issue of financial instruments by committing to buy what is not sold to investors. |
| Placing without a firm commitment | Placing financial instruments with investors on a best-efforts basis, without guaranteeing the sale. |
| Operating a multilateral trading facility (MTF) | Running a multilateral system, other than a regulated market, that matches third-party interests in financial instruments under non-discretionary rules. |
| Operating an organised trading facility (OTF) | Running a multilateral system for non-equity instruments where the operator exercises discretion over order execution. |
| Safekeeping and administration of financial instruments | Holding financial instruments for clients and related services such as cash and collateral management, as an ancillary service. |
| CFD and forex brokerage | Offering retail and professional clients contracts for difference and rolling spot forex, usually as dealing on own account or order execution. |
Where it is valid
Do you need it, and is Cyprus the right choice?
What is a Cyprus Investment Firm (CIF) licence and do you actually need one?
A CIF licence is a MiFID II authorisation from CySEC to provide investment services and activities under the Cyprus Investment Services and Activities and Regulated Markets Law. Dealing on own account is an authorised CIF activity and requires €750,000 minimum capital.2122
Is a Cyprus CIF licence right for your model, and when is Cyprus the wrong choice?
Law 87(I)/2017 Section 9(16) requires at least two persons who meet the criteria of Section 9 and Section 10 to direct the applicant's business effectively. CySEC Directive DI87-09 caps retail CFD leverage between 30:1 and 2:1. Citius Trust notes that statutory CIF capital is only a regulatory floor, and real capital adequacy is driven by projected operational fixed overheads.221323
Track360 benchmarks turnkey setup at $15k to $50k, platform fees at $5k to $15k per month, and liquidity and bridge at $3k to $10k per month. A Leverate report evaluates the capital, technology and compliance economics of starting a forex brokerage.2425
Which CySEC licence class (Class 1, 2, or 3) fits your dealing model?
The tier follows the services you will provide. Class 3 (EUR 75k) covers reception and transmission of orders, investment advice and placement without firm commitment, provided you hold no client money or instruments. Class 2 (EUR 150k) adds execution of orders on behalf of clients (STP), portfolio management and safeguarding of client assets. Class 1 (EUR 750k) is needed for dealing on own account, market making, underwriting or firm-commitment placement.212226
What leverage can you offer retail clients and what happens when they opt up to professional?
CySEC Directive DI87-09 requires margin close-out and negative balance protection for retail CFD clients. ESMA Decision (EU) 2018/796 sets product intervention measures on retail CFDs across the EU. On opting up to professional status, the UK FCA fined the Cyprus broker FXTB £276,100 on 14 August 2024 for unlawfully pressuring retail clients to opt up.232728
Crypto CFDs fall under MiFID II, not MiCA. Article 2(4)(a) of Regulation (EU) 2023/1114 (MiCA) excludes MiFID II financial instruments from MiCA scope, and Annex I Section C(9) of MiFID II lists financial contracts for differences. Harneys confirms that CIFs can provide crypto-asset services by submitting a simple notification to CySEC in accordance with MiCA, without additional MiCA authorisation.293015
What it really takes
How much capital do you really need for a Cyprus CIF licence?
Initial capital under Article 9 of Law 165(I)/2021 is €75,000, €150,000 or €750,000. Under Article 11 IFR, as Citius Trust explains, a CIF's own funds must equal the highest of the permanent minimum capital, the fixed overheads requirement (FOR) or the K-factor, and Article 13 IFR sets the one-quarter FOR. CySEC Form 87-00-01, Question B4, requires documentation of paid-up share capital and other capital raised, including Registrar of Companies certificates.3132
Who do you have to hire for a Cyprus CIF and where must they be based?
A Cyprus CIF must have at least two executive and two independent non-executive directors, and the majority of the board must be Cyprus residents. It needs a Money Laundering Compliance Officer, CySEC AML certified, on the AML register and based in Cyprus, and a regulatory compliance officer with CySEC Advanced certification. Senior officers must head dealing rooms, sales, dealing on own account, risk management, back office, accounting and internal audit; some functions can be outsourced. An external auditor is required. Staff in investment services must pass CySEC exams and register.15
In which language must the Cyprus CIF application and documents be filed?
The application is made on CySEC Form 87-00-01, and the form and accompanying documents must be submitted in wet-ink version.15
Articles 1 to 6 of Commission Delegated Regulation (EU) 2017/1943 define the authorisation information checklist: general information, capital, shareholders, the management body, financial information and organisation. Commission Implementing Regulation (EU) 2017/1945 prescribes standard application forms and templates across the EU. CySEC Form 87-00-01 links to questionnaires 87-00-12 to 87-00-15 and checklist 87-00-22.12
The legal framework
| Level | Document | What it does here |
|---|---|---|
| EU law | Directive 2014/65/EU on markets in financial instruments | Harmonised EU framework directive establishing CIF licensing preconditions, operating conditions, governance, investor protection, and EU passporting (Articles 5-23, 24-30, 34-35) |
| EU law | Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 | Directly applicable EU regulation governing pre- and post-trade transparency, transaction reporting, trading venue access, derivatives trading obligations, and supervisory product intervention |
| EU law | Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms (IFR) | Directly applicable EU regulation establishing the dedicated prudential framework for investment firms: initial capital tiers (€750k, €150k, €75k), K-factor capital requirements, liquidity, and public disclosure |
| EU law | Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019 on the prudential supervision of investment firms (IFD) | Harmonised EU directive on prudential supervision of investment firms, internal capital adequacy (ICAAP), supervisory review (SREP), governance, and remuneration |
| EU law | Capital Requirements Regulation | Legacy prudential reference in Law 87(I)/2017 ss. 9(5) and 16; directly governs Class 1 'bank-like' systemic investment firms reclassified under IFR Article 1(2) |
| EU law | Capital Requirements Directive | Harmonised prudential supervision framework applying alongside CRR to Class 1 systemic investment firms |
| EU law | Directive 97/9/EC of the European Parliament and of the Council of 3 March 1997 on investor-compensation schemes | Harmonises investor compensation schemes across the EU; mandatory scheme membership is a statutory prerequisite to CIF authorisation under Law 87(I)/2017 Section 15 |
| EU law | Commission Delegated Directive (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and inducements | Specifies detailed requirements for client asset segregation, restrictions on title transfer collateral arrangements, inducements, and product governance |
| Act | The Investment Services and Activities and Regulated Markets Law of 2017 (Law 87(I)/2017 as amended) | Primary Cyprus statute transposing MiFID II: establishes CIF authorisation regime (ss. 5-21), operating conditions (ss. 22-34), passporting (ss. 35-39), supervision and sanctions (ss. 68-75, 93-95) |
| Act | The Prudential Supervision of Investment Firms Law of 2021 (Law 165(I)/2021) | Transposes IFD (Directive (EU) 2019/2034) into Cyprus domestic law: regulates prudential supervision of CIFs alongside IFR, SREP, internal capital assessment, and defines 'significant CIF' in s. 22(4) |
| Act | The Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2009 (Law 73(I)/2009 as amended) | Establishes CySEC as independent supervisory authority, confers investigation and administrative sanctioning powers, and grants Section 56(1) power to issue binding regulatory Directives |
| Act | The Alternative Investment Fund Managers Law of 2013 (Law 56(I)/2013 as amended) | Transposes AIFMD; applies to CIFs authorised to perform individual portfolio management or management of alternative investment funds under Law 87(I)/2017 and Law 56(I)/2013 |
| Regulator rules | CySEC Directive DI87-01 on the Safeguarding of Financial Instruments and Funds Belonging to Clients (as amended by DI87-01(A)) | Prescribes binding operational rules for client asset and funds segregation, daily reconciliations, deposit with central banks or credit institutions, and prohibition of retail TTCA |
| Regulator rules | CySEC Directive DI87-05 for the Suspension and Withdrawal of Authorisation (as amended by DI87-05(A)) | Establishes regulatory procedures, notification steps, and licensee obligations upon CySEC suspension or withdrawal of CIF authorisation under Law 87(I)/2017 ss. 8 and 71 |
| Regulator rules | CySEC Directive DI87-07 on the Operation of the Investor Compensation Fund | Governs mandatory membership, initial and annual contributions, fund reserves, and compensation procedures for covered clients up to €20,000 per investor |
| Regulator rules | CySEC Directive DI87-09 for the Restriction on the Marketing, Distribution or Sale of Contracts for Differences (CFDs) to Retail Clients (as consolidated) | Imposes mandatory leverage limits (30:1 to 2:1), margin close-out rule, negative balance protection, and marketing restrictions on CIFs offering CFDs to retail clients |
| Regulator rules | CySEC Directive DI87-04 on the Provision of Investment Services by Third Country Firms to Eligible Counterparties and Professional Clients (as consolidated) | Governs the regime under which non-EU third-country firms may provide cross-border investment services into Cyprus without full CIF establishment |
| Procedure law | Constitution of the Republic of Cyprus (1960), Article 146 | Grants constitutional right of judicial review recourse before the Administrative Court against CySEC regulatory acts, decisions, or omissions within a strict 75-day deadline |
| Procedure law | The Establishment and Functioning of the Administrative Court Law of 2015 (Law 131(I)/2015 as amended) | Designates the Administrative Court of Cyprus as the court of first instance for Article 146 recourses against CySEC decisions or regulatory silence |
| Procedure law | The General Principles of Administrative Law Law of 1999 (Law 158(I)/1999 as amended) | Binds CySEC to statutory administrative due process: duty of proper inquiry (s. 45), right to be heard before adverse administrative action (s. 43), and duty to state reasons (s. 26) |
| Fee schedule | CySEC Directive DI87-03 on Charges and Annual Fees (as consolidated through DI87-03(F)) | Issued under Law 87(I)/2017 s. 95: sets non-refundable CIF application charges (€7,000 basic, €25,000 MTF/OTF, €500 per ancillary), board notification fees, change of control fees (€3,500), and annual fee formulas |
| Technical standards | Commission Delegated Regulation (EU) 2017/1943 of 14 July 2016 supplementing Directive 2014/65/EU with regard to regulatory technical standards on information and requirements for the authorisation of investment firms | Specifies the exhaustive information checklist required in an application dossier for investment firm authorisation across the EU (Articles 1-10) |
| Technical standards | Commission Implementing Regulation (EU) 2017/1945 of 19 June 2017 laying down implementing technical standards with regard to notifications by and to applicant and authorised investment firms according to Directive 2014/65/EU | Prescribes standard templates, forms, and procedures for submitting authorisation applications and notifications of changes to competent authorities |
| Technical standards | Commission Delegated Regulation (EU) 2017/1946 of 11 July 2017 supplementing Directive 2014/65/EU with regard to regulatory technical standards for an exhaustive list of information to be included by proposed acquirers in the notification of a proposed acquisition of a qualifying holding in an investment firm | Establishes the detailed information list required for prior notification of proposed acquisitions or increases of qualifying holdings in a CIF |
| Technical standards | Commission Implementing Regulation (EU) 2017/1944 of 13 June 2017 laying down implementing technical standards with regard to standard forms, templates and procedures for the consultation process between relevant competent authorities in relation to the notification of a proposed acquisition of a qualifying holding in an investment firm | Governs inter-authority consultation procedures when a proposed acquirer of a CIF qualifying holding is regulated in another Member State |
| Technical standards | Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU as regards organisational requirements and operating conditions for investment firms and defined terms | Directly applicable EU regulation detailing internal control, compliance, risk management, internal audit, personal transactions, outsourcing, conflicts of interest, and best execution |
| Technical standards | Commission Implementing Regulation (EU) 2017/2382 of 14 December 2017 laying down implementing technical standards with regard to standard forms, templates and procedures for the transmission of information in accordance with Directive 2014/65/EU | Prescribes mandatory EU passport notification templates and transmission timelines for freedom to provide services and branch establishment under MiFID II Articles 34 and 35 |
| Forms | CySEC Form 87-00-01 (Application for the Granting of CIF Authorisation / Extension to the Authorisation) | Mandatory standard application dossier setting out all required disclosures, questionnaires, and operational attachments for CIF authorisation |
| Forms | CySEC Personal and Shareholder Questionnaires (Forms 87-00-11, 87-00-12, 87-00-13, 87-00-14, 87-00-18, 87-00-19) | Prescribed fit-and-proper questionnaires and change-of-qualifying-holding notification forms for directors, executive officers, and shareholders of a CIF |
11 related regimes and guidance documents
| Level | Document | What it does here |
|---|---|---|
| Guidance | ESMA and EBA Joint Guidelines on the assessment of the suitability of members of the management body and key function holders (EBA/GL/2021/06 & ESMA35-36-2319) | Sets EU supervisory criteria for evaluating reputation, honesty, integrity, competence, time commitment, independence of mind, and collective suitability of CIF management |
| Guidance | CySEC Circulars on CIF Governance, Local Substance, Outsourcing and Compliance | Provides non-binding regulatory guidance and supervisory expectations regarding local mind-and-management, board composition, and outsourcing boundaries |
| Related regime | Digital Operational Resilience Act | Directly applicable EU regulation establishing ICT risk management, incident classification and reporting, digital operational resilience testing, and third-party ICT provider oversight for CIFs (applies from 17 January 2025) |
| Related regime | Fourth Anti-Money Laundering Directive (as amended by the fifth, 2018/843) | Harmonised AML/CFT directive framework establishing CIFs as obliged entities; transposed in Cyprus by Law 188(I)/2007 |
| Related regime | Anti-Money Laundering Regulation (single rulebook) partly in force | Directly applicable EU single rulebook establishing uniform CDD and internal controls for obliged entities including CIFs (applies from 10 July 2027) |
| Related regime | The Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 (Law 188(I)/2007 as amended) | Designates CySEC as AML/CFT supervisor for CIFs (s. 59(1)(b)), mandates certified AMLCO, customer due diligence, risk assessment, transaction monitoring, and STR reporting to MOKAS |
| Related regime | Transfer of Funds Regulation (travel rule) | Obligates financial institutions including CIFs to obtain, verify, and transmit originator and beneficiary information accompanying funds transfers |
| Related regime | Markets in Crypto-Assets Regulation | Under MiCA Article 60, authorised CIFs may provide equivalent crypto-asset services across the EU subject to a simplified notification to CySEC rather than a separate CASP authorisation |
| Related regime | European Crowdfunding Service Providers Regulation | Governs investment-based crowdfunding services in transferable securities; complements CySEC Directive DI87-10 for CIFs providing crowdfunding services |
| Related regime | Alternative Investment Fund Managers Directive | Harmonised EU directive applying to investment firms authorised to manage alternative investment funds or provide discretionary portfolio management to AIFs |
| Related regime | UCITS Directive | Governs collective investment undertakings whose units CIFs are authorised to distribute, market, or manage under discretionary mandates |
The procedure under the law
| Step | What the law says | Legal reference |
|---|---|---|
| How to file | CySEC requires certain forms to be submitted electronically via the TRS system with a certified digital signature, in accordance with the electronic signatures law (N.34(I)/2009 and N.86(I)/2012). The CIF authorisation application is Form 87-00-01. A CySEC Portal is listed among CySEC's registries and portals.789 | Law 73(I)/2009 s. 4(1), 56(1) and Law 87(I)/2017 s. 7(1)-(2) read with Commission Implementing Regulation (EU) 2017/1945 Art. 1 (no dedicated online portal is created by primary statute; CySEC mandates electronic submission via portal under supervisory powers and Circulars on Qualified Digital Signatures) |
| Language | Application Form 87-00-01 and core regulatory filings are published and accepted directly in English by CySEC. Supporting official documentation issued in languages other than Greek or English (such as criminal record certificates, passports/IDs, good standing certificates, and foreign corporate records) must be submitted in original or certified copy accompanied by an official certified translation into Greek or English (by an accredited translator, the Cyprus Press and Information Office, or a certified sworn translator) and apostilled under the 1961 Hague Convention (or consular legalised for non-Hague states). | |
| What the application contains | Relevant forms include Form 87-00-01 (Application for the granting of CIF Authorisation/Extension to the authorisation), Form 87-00-11 (Questionnaire of the members of the Board of Directors), Form 87-00-12 (Questionnaire of an applicant's shareholder who is a natural person), Forms 87-00-13/14 (shareholder questionnaires for legal person/trust), Forms 87-00-18/19/20 (qualifying holding notifications) and Form 87-00-22 (Checklist for the Internal Operations Manual).1092 | Law 87(I)/2017 s. 7(1)-(2), Commission Delegated Regulation (EU) 2017/1943 Art. 1-10, and Commission Implementing Regulation (EU) 2017/1945 Art. 1-5 |
| Decision clock | The applicant must be informed whether authorisation is granted or refused within six months of the submission of a complete application (MiFID II Art. 7(3); Reg. 2017/1945 Art. 6). The period starts on submission of that complete application; an acknowledgement of receipt is sent within 10 working days, and the authority may request additional information. No extension or clock stop is stated. If no decision is taken within six months, the applicant may seek judicial review before the Supreme Court under Constitution Art. 146 (Law 87(I)/2017 s. 75(1)).111213 | |
| Fees set by law | CySEC application fees depend on the services applied for and range from €7,000 to €25,000. Annual fees combine a fixed charge (€5,000, €10,000) with variable charges based on turnover or income, plus €3,000 for CFD services and €2,000 for algorithmic trading. Operating an MTF carries a €7,000 annual fee plus 11% of MTF income every six months; an OTF pays 11% of its income every six months. The fees are set in CySEC Directive DI87-03.1415516 | CySEC Directive DI87-03 on Charges and Annual Fees (as amended through DI87-03(F)), issued under Section 95 of Law 87(I)/2017 |
| Grounds for refusal | Under MiFID II the authority must refuse authorisation if the management body's members do not meet the good repute, knowledge, skills, experience and time requirements, or if the body may threaten sound and prudent management, client interests or market integrity (para. 4). It must also refuse where shareholders or members with qualifying holdings are not suitable (Article 10), and can authorise only where close links do not prevent effective supervision. The 2017 Cyprus CIF Law adds refusal where third-country rules or enforcement difficulties hinder supervision.111713 | |
| Appeal | A refusal by CySEC can be challenged through judicial review under Article 146 of the Constitution of Cyprus. Section 75(1) of Law 87(I)/2017 states that every decision of the Commission is subject to judicial review before the Supreme Court. There is no internal appeal procedure with CySEC. The right also applies where no decision is taken within six months of a complete application.1318 | Law 87(I)/2017 s. 75(1) read with Article 146 of the Constitution of the Republic of Cyprus and the Establishment and Functioning of the Administrative Court Law of 2015 (Law 131(I)/2015). Any regulatory act, decision, or omission of CySEC is subject to judicial review recourse before the Administrative Court within 75 calendar days from publication or notification of the decision to the applicant. A second-instance appeal on questions of law lies to the Court of Appeal within 42 days. |
| Validity | They do confirm that the authorisation is valid for the entire European Union and allows the CIF to provide its authorised services throughout the EU via right of establishment or freedom to provide services. An investment firm seeking to add services must request an extension of its authorisation.1311 | |
| Change of control | For a change of control, CySEC may request further information no later than the 50th working day of the assessment period. The period is then interrupted for up to 20 working days, extendable to 30 working days where the acquirer is situated or regulated in a third country or is not subject to supervision.1319 | |
| Reapplying after a refusal | None of the governing texts held for this licence (Investment Services and Activities and Regulated Markets Law of 2017; Investment Services and Activities and Regulated Markets Law of 2017; Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2009; Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2009; The Alternative Investment Fund Managers Law of 2013; The Alternative Investment Fund Managers Law of 2013; The Open-Ended Undertakings for Collective Investment (UCI) Law of 2012; The Open-Ended Undertakings for Collective Investment (UCI) Law of 2012; Directive 2014/65/EU on markets in financial instruments; Directive 2014/65/EU on markets in financial instruments; Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012; Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012; Alternative Investment Fund Managers Directive; Alternative Investment Fund Managers Directive; UCITS Directive; UCITS Directive; The Law Regulating Companies Providing Administrative Services and Related Matters of 2012; The Law Regulating Companies Providing Administrative Services and Related Matters of 2012; Law 165(I)/2021 (Cyprus Prudential Supervision of Investment Firms Law); Prevention and Suppression of Money Laundering and Terrorist Financing Law) contains a provision on a waiting period before a new application after refusal or withdrawal. | |
| Serving other countries | Yes: passporting. An investment firm may provide investment services and activities in another Member State under the freedom to provide services or the right of establishment. For a branch, CySEC has three months from receiving all the information to act, and must give reasons if it refuses. Commission Implementing Regulation (EU) 2017/2382 sets out the standard forms and procedures for passport notifications.2013 |
How long it takes
How long does getting a Cyprus CIF licence really take?
Practitioners report different timelines. Crassula's licensing guide documents 9 to 14 months end to end for a Class 2 retail-broker CIF. Salvus Funds records CySEC CIF licensing taking 8 months on average, depending on regulator workload and how promptly documentation is supplied. Law 87(I)/2017 Section 7(3) sets a statutory decision period of 6 months from submission of a complete application.211613
Section 75(1) of Law 87(I)/2017 gives a 6-month decision period on a complete application and allows judicial review if the regulator stays silent. Article 146 of the Cyprus Constitution provides judicial recourse against administrative omissions before the Supreme Constitutional Court. Salvus Funds reports that licensing takes 8 months on average, depending on CySEC workload and how promptly the applicant supplies requested information.133316
Statutory: 6 months from receipt of a complete application2. Observed: not published. The statutory clock usually starts only when the regulator treats the application as complete, and pauses while it waits for answers to its questions.
What it costs
What does a Cyprus CIF licence cost in total, first year and ongoing?
CySEC's published application charges include €25,000 for the investment activities of paragraphs 8 and 9, €500 per ancillary service and €2,000 for algorithmic trading. Annual CySEC fees start with fixed charges of €5,000 to €10,000 plus variable charges. Initial Investors Compensation Fund contributions are €2,000 per investment service and €35,000 for safekeeping.515
Approval odds and who can own it
What are the real approval odds for a CIF, and why do applications fail?
On 16 January 2024 the Cyprus Administrative Court rejected the Pegase Capital directors' appeal and upheld CySEC fines of €25,000 each. On 28 March 2024 it upheld a €20,000 CySEC fine against former CommexFX CFO Vladimiros Germanos.3435
Commission Delegated Regulation (EU) 2017/1946 specifies the detailed information required when acquirers of qualifying holdings are evaluated.36
After you get the licence
Article 60 of Regulation (EU) 2023/1114 (MiCA) allows an authorised CIF to provide crypto-asset services by notification. Regulation (EU) 2022/2554 (DORA) sets operational resilience and ICT incident reporting obligations and applies from 17 January 2025.2937
Will you get a bank account and payment processing for a Cyprus CIF?
CySEC Directive DI87-01 requires a CIF to place client funds, as soon as it receives them, in one or more accounts with a credit institution.38
Regulation (EU) 2024/1624 (AMLR) applies directly from 10 July 2027. CySEC's public consultation proposed restructuring CIF application fees: €8,000 per service (€15,000 for dealing on own account) in place of the flat €7,000 investment services fee, and €30,000 for MTF/OTF instead of €25,000. Finance Magnates reports CIF departures, among them HTFX, VPR Safe Financial Group and Royal Forex, through voluntary renouncement or withdrawal of authorisation.3940
Can you appeal a CySEC refusal, to whom and by when?
Yes. CySEC has no internal appeal procedure. Under Article 146 of the Cyprus Constitution and Section 75(1) of the Investment Services and Activities and Regulated Markets Law of 2017, every CySEC decision is subject to judicial review before the Supreme Court. This right also applies if no decision is taken within six months of a complete authorisation application.1813
Buying a company that already holds it
Prior notification with an objection period. Any natural or legal person proposing to acquire or increase, directly or indirectly, a qualifying holding reaching or crossing 10%, 20%, 30%, or 50% in a CIF, AIFM, or CASP, or to achieve control making it a subsidiary, must submit prior written notification to CySEC under Sections 12 and 13 of Law 87(I)/2017 and MiCA Article 83. CySEC acknowledges receipt within two working days and has a statutory assessment period of 60 working days to oppose the acquisition based on reputation, financial soundness, AML risks, and fit-and-proper criteria. The assessment period may be interrupted once by up to 20 working days (or 30 working days for non-EU entities) to request additional information. If CySEC does not object in writing before expiry, the transaction is deemed approved. Closing without CySEC non-opposition suspends voting rights and risks statutory penalties.6
Ready-made companies holding this licence: see verified positions.
IF in other countries
| Country | Licence | Regulator | Min. capital | Application fee | Statutory time |
|---|---|---|---|---|---|
| Abu Dhabi Global Market (ADGM) | Investment firm licenceFinancial Services Permission for Dealing in Investments as Principal (Category 2) | FSRA | n/a | USD 40,000 | n/a |
| Abu Dhabi Global Market (ADGM) | Investment firm licenceFinancial Services Permission for Dealing in Investments as Agent or Matched Principal (Category 3A) | FSRA | n/a | n/a | n/a |
| Abu Dhabi Global Market (ADGM) | Investment firm licenceFinancial Services Permission for Advising on Investments or Arranging Deals in Investments (Category 4) | FSRA | n/a | n/a | n/a |
| Australia | Australian financial services licence (AFSL) | ASIC | n/a | n/a | n/a |
| Bermuda | Investment Business LicenceInvestment Business Licence (standard licence, under the Investment Business Act 2003) | BMA | n/a | n/a | n/a |
| British Virgin Islands | Investment Business LicenceInvestment Business Licence (Categories 1-4: dealing, managing, advising, custody/administration of investments) | BVI FSC | n/a | n/a | n/a |
| Cayman Islands | Securities Investment Business Licence / Registered Person | CIMA | n/a | n/a | n/a |
| Cyprus | Cyprus Investment Firm (CIF) authorisation | CySEC | n/a | EUR 7,000 | ~6 mo |
| Czech Republic | Investment Firm licence | CNB | n/a | CZK 20,000 | ~6 mo |
| Dubai International Financial Centre (DIFC) | Investment firm licenceFinancial Services Permission for Dealing in Investments as Principal (Category 2) | DFSA | n/a | USD 40,000 | n/a |
| Dubai International Financial Centre (DIFC) | Investment firm licenceFinancial Services Permission for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A) | DFSA | n/a | USD 25,000 | n/a |
| Dubai International Financial Centre (DIFC) | Investment firm licenceFinancial Services Permission for Advising on Financial Products or Arranging Deals in Investments (Category 4) | DFSA | n/a | USD 15,000 | n/a |
| Estonia | Authorisation as an investment firm | FI | n/a | EUR 3,000 | ~2 mo |
| France | Financial investment adviser status | AMF | n/a | n/a | n/a |
| Germany | Investment firm licence | BaFin | n/a | EUR 6,336 | ~6 mo |
| Hong Kong | Type 1 Licence for Dealing in Securities | SFC | n/a | HKD 4,740 | ~3.5 mo |
| Hong Kong | Type 2 Licence for Dealing in Futures Contracts | SFC | n/a | HKD 4,740 | ~3.5 mo |
| Hong Kong | Type 4 Licence for Advising on Securities | SFC | n/a | HKD 4,740 | ~3.5 mo |
| Hong Kong | Type 6 Licence for Advising on Corporate Finance | SFC | n/a | HKD 4,740 | ~3.5 mo |
| Hong Kong | Type 7 Licence for Providing Automated Trading Services | SFC | n/a | HKD 4,740 | ~3.5 mo |
| Ireland | Investment Firm Authorisation (MiFID II) | CBI | n/a | n/a | n/a |
| Italy | Investment firm licence (SIM) | CONSOB | n/a | n/a | ~6 mo |
| Latvia | Investment firm licence | LB | n/a | n/a | n/a |
| Lithuania | Financial brokerage firm licence | LB | n/a | n/a | n/a |
| Luxembourg | Investment firm authorisation | CSSF | n/a | EUR 50,000 | ~6 mo |
| Malaysia (Labuan) | Securities Licensee licenceSecurities Licensee licence (dealing in / advising on securities) | Labuan FSA | n/a | n/a | n/a |
| Malta | Investment services licence (Category 1, 2, or 3) | MFSA | n/a | EUR 7,250 | ~6 mo |
| Mauritius | Investment Adviser Licence | FSC | n/a | n/a | n/a |
| Mauritius | Investment Dealer Licence | FSC | n/a | USD 500 | ~0.5 mo |
| Netherlands | Investment firm licenceInvestment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II | AFM | n/a | EUR 200 | ~3 mo |
| Poland | Brokerage House licence (dom maklerski) | KNF | n/a | EUR 4,500 | ~2 mo |
| Seychelles | Securities Dealer's Licence | FSA | n/a | n/a | n/a |
| Singapore | Capital Markets Services (CMS) Licence | MAS | n/a | SGD 1,000 | n/a |
| Slovakia | Investment firm licence | NBS | n/a | n/a | n/a |
| South Africa | Financial Services Provider licence - Category IFinancial Services Provider licence - Category I (advice and/or intermediary services, non-discretionary, incl. crypto assets) | FSCA | n/a | n/a | n/a |
| South Africa | Financial Services Provider licence - Category II (discretionary FSP) | FSCA | n/a | n/a | n/a |
| South Africa | Over-the-Counter Derivative Provider (ODP) authorisationOver-the-Counter Derivative Provider (ODP) authorisation under the Financial Markets Act | FSCA | n/a | n/a | n/a |
| Spain | AV) investment firm licence | CNMV | n/a | EUR 10,000 | ~6 mo |
| Spain | Empresa de Asesoramiento Financiero (EAF) licence | CNMV | n/a | EUR 1,000 | ~6 mo |
| Switzerland | Portfolio manager licence | FINMA | n/a | n/a | n/a |
| Switzerland | Securities firm licence | FINMA | n/a | n/a | n/a |
| United Kingdom | MIFIDPRU Investment Firm Authorisation (Part 4A FSMA) | FCA | n/a | GBP 2,820 | ~6 mo |
Values come from each licence's page, where every figure has its source.
Laws behind it
- Directive 2014/65/EU on markets in financial instruments: Directive 2014/65/EU
- Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012: Regulation (EU) No 600/2014
- Alternative Investment Fund Managers Directive: Directive 2011/61/EU
- UCITS Directive: Directive 2009/65/EC
Frequently asked questions
What is a Cyprus Investment Firm (CIF) licence and do you actually need one?
A CIF licence is a MiFID II authorisation from CySEC to provide investment services and activities under the Cyprus Investment Services and Activities and Regulated Markets Law.
How much capital do you really need for a Cyprus CIF licence?
Initial capital under Article 9 of Law 165(I)/2021 is €75,000, €150,000 or €750,000.
How long does getting a Cyprus CIF licence really take?
Practitioners report different timelines. Crassula's licensing guide documents 9 to 14 months end to end for a Class 2 retail-broker CIF. Salvus Funds records CySEC CIF licensing taking 8 months on average, depending on regulator workload and how promptly documentation is supplied. Law 87(I)/2017 Section 7(3) sets a statutory decision period of 6 months from submission of a complete application.
What does a Cyprus CIF licence cost in total, first year and ongoing?
CySEC's published application charges include €25,000 for the investment activities of paragraphs 8 and 9, €500 per ancillary service and €2,000 for algorithmic trading.
What are the real approval odds for a CIF, and why do applications fail?
On 16 January 2024 the Cyprus Administrative Court rejected the Pegase Capital directors' appeal and upheld CySEC fines of €25,000 each.
Will you get a bank account and payment processing for a Cyprus CIF?
CySEC Directive DI87-01 requires a CIF to place client funds, as soon as it receives them, in one or more accounts with a credit institution.
Who do you have to hire for a Cyprus CIF and where must they be based?
A Cyprus CIF must have at least two executive and two independent non-executive directors, and the majority of the board must be Cyprus residents.
Is a Cyprus CIF licence right for your model, and when is Cyprus the wrong choice?
Law 87(I)/2017 Section 9(16) requires at least two persons who meet the criteria of Section 9 and Section 10 to direct the applicant's business effectively.
In which language must the Cyprus CIF application and documents be filed?
The application is made on CySEC Form 87-00-01, and the form and accompanying documents must be submitted in wet-ink version.
Can you appeal a CySEC refusal, to whom and by when?
Yes. CySEC has no internal appeal procedure. Under Article 146 of the Cyprus Constitution and Section 75(1) of the Investment Services and Activities and Regulated Markets Law of 2017, every CySEC decision is subject to judicial review before the Supreme Court. This right also applies if no decision is taken within six months of a complete authorisation application.
Sources
- cysec.gov.cy: cypriot · retrieved 2026-09-24
- cysec.gov.cy: epey · retrieved 2026-09-24
- cysec.gov.cy: cysec · retrieved 2026-09-24
- cysec.gov.cy: collective investment · retrieved 2026-09-24
- cysec.gov.cy · retrieved 2026-09-24
- cylaw.org: full · secondary · retrieved 2026-09-24
- https://portal.cysec.gov.cy and · retrieved 2026-10-01
- cysec.gov.cy: digital signature · retrieved 2026-10-01
- cysec.gov.cy: 43833 · retrieved 2026-10-01
- cysec.gov.cy: 1945 Annex I · retrieved 2026-10-01
- Directive 2014/65/EU on markets in financial instruments · retrieved 2026-10-01
- EUR-Lex: oj · retrieved 2026-10-01
- cysec.gov.cy · retrieved 2026-10-01
- cysec.gov.cy: 86374 · retrieved 2026-10-01
- harneys.com: mifid ii investment firm licences and mica two for one · retrieved 2026-10-01
- salvusfunds.com: cyprus securities and exchange commission cysec · retrieved 2026-10-01
- EUR-Lex: CELEX 32014L0065 · retrieved 2026-10-01
- cysec.gov.cy: asp · retrieved 2026-10-01
- EUR-Lex: oj · retrieved 2026-10-01
- EUR-Lex: oj · retrieved 2026-10-01
- crassula.io: cyprus cif · secondary · retrieved
- citiustrust.com: cif capital requirements · secondary · retrieved
- cysec.gov.cy · retrieved 2019-09-27
- track360.io: white label forex broker cost setup operator guide 2026 · secondary · retrieved 2026-02-12
- leverate.com: how much does it cost to start a brokerage · secondary · retrieved 2024-11-05
- EUR-Lex: oj · secondary · retrieved
- EUR-Lex: oj · retrieved 2018-05-22
- stephensonharwood.com: fca publish a final notice in relation to cypriot cfd firm f · secondary · retrieved 2024-08-14
- EUR-Lex: oj · retrieved 2023-06-09
- EUR-Lex: oj · retrieved 2014-05-15
- citiustrust.com: cif capital adequacy · secondary · retrieved 2026-04-15
- EUR-Lex: oj · retrieved 2021-11-05
- law.gov.cy: The Constitution of the Republic of Cyprus (PDF) · retrieved 1960-08-16
- fxnewsgroup.com: cyprus court rejects fine appeal of former interactive optio · retrieved 2024-03-08
- fxnewsgroup.com: cyprus court upholds e20k fine against former commexfx cfo v · retrieved 2024-06-14
- EUR-Lex: oj · retrieved 2017-07-11
- EUR-Lex: CELEX 32022R2554 · retrieved 2022-12-14
- cysec.gov.cy · retrieved 2022-07-22
- financemagnates.com: cfd broker htfx relinquishes cysec license regulator confirm · secondary · retrieved 2026-01-22
- EUR-Lex: oj · retrieved 2024-05-31
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