MAIN PRINCIPLE OF OFFSHORE FINANCIAL ACTIVITY FROM WITHIN CYPRUS


The following principles are the main principles that regulate an offshore financial activity, being carried out from within Cyprus.


Honesty and correspondence to market demands

An offshore financial company (OFC) must stick to demands, in respect of honesty carrying out its operations and must avoid conflicts. It must correspond to the market demands, follow basic standards, regulating items in accordance with conditions of a permission issued under the Currency Regulation Law.


Qualification, steadiness and accuracy

OFC must stick to the demands about appropriate qualification, steadiness and accuracy in carrying out its financial activity.


Information received from clients

OFC must be interested in clients' advice and information about possible circumstances and objects of investments, examining such a possibility.


Information for clients

OFC must give advice to its clients if it is really sure about usefulness and safety of a certain matter or step. Every time OFC must be ready to prove that it is in charge of client's financial activity.


Possible conflicts

OFC must avoid any conflict and if one appears must be regulated according to the inner rules. OFC must not put its own interests by any dishonest way above the clients' interests. And if a client says that his interests are more important - he is right.


Responsibility for clients' assets

When OFC controls or has some other responsibility over clients' assets, must protect them, place them separately and use the method of identification. It depends on the level of responsibility.


Financial Resources

OFC must have appropriate financial resources necessary for committing its responsibilities and for avoiding risks possible in carrying out some operations which are the objects of company's activity.


Inner organization

OFC must organize and control its inner activity with full responsibility, regulate it according to the demands of legislation. When OFC employs its staff and becomes responsible for carrying out other people's financial activity, must have well organized, regulated and controlled structure.


Relations with the Central Bank of Cyprus

OFC must use principles of cooperation with the Central Bank of Cyprus.
OFC must inform the Central Bank of Cyprus about its activity.