Gold Magazine April - May 2013, Issue 25

Regulatio Regulation Regulation, Regulation, Regulation, The long-overdue Fiduciaries Law will ensure that service providers are professional and qualified. T By John Vickers. Photograph by Jo Michaelides. he long-overdue law on the Regulation of Fiduciaries, Administration Businesses and Company Directors, which transposes the provisions of Directive 2005/60/EC into national law, was enacted by the House of Representatives in December. Among the changes that the original draft law underwent was the shifting of supervisory responsibility from the Central Bank of Cyprus to the Cyprus Securities and Exchange Commission (CySEC). Andreas Andreou, Vice-Chairman of the CySEC, tells Gold about the provisions of the new law and what it means for the professional services sector. Gold: Let’s start with the basics. Can you define what fiduciary services are, according to the new law? Andreas Andreou: Αdministrative services or, as they are customarily called, fiduciary services are services or activities provided by companies which specialize in the management of private companies. Section 4 of the law regulating companies providing administrative services defines such services as the administration or management of trusts, the administration or management of companies (which includes the provision of directors, secretary and registered address for legal persons as well as holding such persons’ share capital), the provision of general or limited partners in partnerships, the opening or managing of bank accounts and the safekeeping of financial instruments on behalf of clients, including acting as a depositary. Gold: Why was the new law necessary? A.A.: It is no secret that over the years, Cyprus has gained a well-deserved reputation as an trusted upcoming international business centre. The law aims at ensuring that fiduciary providers follow best practices, especially with regard to antimoney laundering procedures the international investment, finance & professional services magazine of cyprus Gold 53

Gold Magazine April - May 2013, Issue 25 | Page 53