Archive

Archive for the ‘Forex Brokerage’ Category

Cyprus Stock Exchange’s Emerging Market Listed Cyprus companies ideal for any type of project

Cyprus Stock ExchangeInternational investors aiming to invest globally in any type of investment (Equity or bond trading, property and others) now have an opportunity to conduct their business in an efficient way by choosing to register a public company in Cyprus and subsequently list the company on the Cyprus Stock Exchange’s Emerging Companies Market through simplified procedures and very reasonable costs.

Eurivex, a regulated Cyprus investment firm, is an authorized Nominated Advisor (Nomad) to help facilitate the listing of foreign companies on the Cyprus Stock Exchange’s Emerging Companies Market (CSE/ECM).

All the above can be done through Cyprus registered companies, with their bank accounts, Boards and registered offices in Cyprus. The investors in the listed Cyprus companies which list on the Cyprus Stock Exchange’s Emerging Companies Market will get to benefit from the low taxation rate of 10% applied on net profits in Cyprus, no withholding tax on dividends declared to non-residents, plus the double taxation avoidance treaties that Cyprus has signed with more than 45 countries including the US, Canada, Germany, UK, France, Italy, Spain as well as with Russia, India, China, Qatar and the UAE to name a few.

For the double taxation benefits to apply, the majority of Board of Directors should be Cyprus resident.

A Cyprus based public company listed on the Cyprus Stock Exchange’s Emerging Companies Market is also ideal for thousands of Russian owned Cyprus private firms, which were used extensively to purchase property in Russia. Following the agreement on the amendment to the Russia-Cyprus Double Tax Treaty, which now awaits parliamentary ratification before implementation, Russia will impose a capital gains tax of 15% on capital appreciation from property investments on all companies, with the exception of publicly listed ones. The Cyprus Stock Exchange is a recognized stock exchange by the Russian tax authorities.

Cyprus Stock ExchangeIf the new issue is under EUR 2.5 mln value, there is no need to submit prospectus, with the listing on the Cyprus Stock Exchange’s Emerging Companies Market possible through Admission Document that will be prepared by the listed company’s Nominated Advisor (Nomad). If the new issue is more than EUR 2.5 mln in value, a prospectus needs to be submitted to the Cyprus Securities & Exchange Commission (CySEC) for approval before the listing on the Cyprus Stock Exchange’s Emerging Companies Market is completed.

Advantages of listings on Emerging Market of Cyprus Stock Exchange

– A listed company on a eurozone exchange

– Public Company is essentially a Holding Company qualifying for all double taxation benefits

– Company is entitled to engage in all types of investments according to Board of Directors decisions

– Beneficial owners can raise up to EUR 2.5 mln funds through very simple procedures

– Listed company can raise money through private placement of shares before or after listing

– Company can be used to acquire other companies, either by cash or through share exchange

– Major shareholders can pledge their shares in listed company to their bank and secure better pricing since they are pledging higher quality collateral

– No minimum daily volume requirement, hence no need to do fictitious trades

– No minimum share dispersion requirement, which means beneficial owner can hold 100% of the shares

– No minimum or maximum market capitalization restriction requirement, which means even small companies with a market capitalization of EUR 50.000 can list on the Cyprus Stock Exchange’s Emerging Companies Market

– Very reasonable costs, both to set-up and maintain the listing on the Cyprus Stock Exchange’s Emerging Companies Market.

The Cyprus Stock Exchange’s Emerging Companies Market is ideally placed to allow companies to operate in a listed environment but at the same time keep their costs under control.

Eurivex provides best online forex trading services along with an award winning MT4 Trading Platform. Know more about our services at www.eurivex.com

Disclaimer:

Shavasb Bohdjalian is an approved Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10. The views expressed above are personal and do not bind the company and are subject to change without notice. Investing in markets and trading on leverage is highly risky and it may not be suitable to all investors since it carries a high degree of risk and you can lose more than your initial investment.

 

 

Advertisements

Capital protected forex products, how safe are they?

Forex products and EurivexAn increasing number of investors looking to play the highly volatile forex market are choosing to invest in capital protected schemes, which at least protect the original capital invested. With the forex market see-sawing in wild swings, making money is becoming more and more difficult. There are also groups of investors such as pension funds, life insurance companies and pensioners who can ill-afford to bear capital losses but still wish to have some kind of exposure to risky assets in commodities, forex, and stock indices.

That is why an increasing number of forex investment firms, forex hedge funds or even forex startups are offering capital protected products to attract investors. Here is how the scheme works.

The bulk of the money raised from investors, about 92-95% is placed in zero coupon bonds, with the objective that at the end of the period, the total will amount to at least 100 or equal to the original sum invested.

The remaining 5-8% is then invested in purchasing options so that in the event that the underlying asset appreciates or depreciates in line with the investment objective of the fund, the investors will receive the percentage gain of that particular market moving in their direction. In such a positive return, the investor will get the proceeds of the maturing bonds, 100, plus the positive return earned on the profit generated on the options.

If on the other hand, the market goes against the underlying investment, the options expire worthless and there is no additional loss on the investment. This means the investors get back their money as the maturing bonds expire.

The main risk is for the bond issuer defaulting. As with all capital protected schemes, the issuer does not take responsibility if the company whose bonds have been purchased goes bust. The risk is always with the investor.

For this reason, investors are strongly recommended to diversify their investments and select a variety of investments, so that even if the underlying bonds in a capital protected scheme default, the rest of their investments will be safe.

Unfortunately, the investor cannot instruct his forex broker or forex fund manager to apply stop loss protection since the capital protected products are tailor made for specific periods and will benefit if the underlying asset moves in the direction stated when the original investment is made.

Disclaimer:

Shavasb Bohdjalian is an approved Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10. The views expressed above are personal and do not bind the company and are subject to change without notice. Investing in markets and trading on leverage is highly risky and it may not be suitable to all investors since it carries a high degree of risk and you can lose more than your initial investment.

Website : www.eurivex.com Email : Shavasb@eurivex.com

Cyprus ICIS structures offer best solution for raising finance

The International Collective Investment Schemes (ICIS) or in layman’s terms, Private Funds, are probably one of the best vehicles through which promoters may raise money from up to 100 investors worldwide and at the same time offer such investors a great deal of protection, with respect to safety of assets, valuations and that the company is operating under EU laws.

Cyprus is increasingly becoming a popular base where many ICIS formations are structured, since it has the unique advantage of providing an EU framework combined with all the tax advantages as well as very competitive rates.

The most popular ICIS structures made from Cyprus are the variable capital ones, whereby when there is demand from investors to subscribe to the shares or units, the capital increases as the new shares/units are issued, and when investors exit the company, the shares/units are canceled.

The original shareholders have the added advantage of subscribing to voting shares, while offering non-voting shares to new investors. As stated previously, the only limitation of an ICIS is that it can only raise money from up to 100 investors. Once it passes the 100 mark, then it is treated like a public fund and has to go through a different registration and management process.

At the moment, the supervision and regulation of ICIS is done by the Central Bank of Cyprus, while in other EU countries, the task is undertaken by the equivalent of the Cyprus Securities & Exchange Commission in member states.

So for the promoters, or those wishing to raise money, an ICIS is extremely advantageous since there is no restriction on how much money can be raised or in what type or types of assets, the money will be invested, provided that the objectives of the funds, where it will invest, etc. are clearly stated in its business plan submitted to the Central Bank of Cyprus in the Offering Memorandum (OM), which is the document through which the ICIS raises money from investors.

The OM will also clearly state how an ICIS accepts money (on monthly, quarterly, semi-annually and so on) and under what terms and conditions investors may exit out of the fund, offering a lot of flexibility for the company.

An ICIS however offers a lot of protection to investors. All the assets are placed under a reputable Custodian Bank, based in Cyprus or abroad, which holds the assets on behalf of all investors. This means the promoter cannot run away with the assets or do as he pleases. All ICIS should also have an independent Administrator, based in Cyprus, which will calculate the Net Asset Value of the ICIS on which shares/units will be purchased and sold and it will also issue/redeem the units.

A regulated firm, with portfolio management license (such as Eurivex) also acts as the overall fund manager to make sure that the actual investments are made according to Board of Directors decisions and defined in OM, that the ICIS operates in full compliance with MiFID rules and make sure that the promoters accept money from investors by following the EU Know-Your-Customer (KYC) and Anti-Money Laundering (AML) rules. This means the only risk undertaken by investors is the actual risk of investment whereas in all other respects they are fully protected.

By having at least one member of the Board of the ICIS a Cyprus resident and since Eurivex, a Cyprus Investment Firm is the manager of the company, this will allow the ICIS to qualify for all the Cyprus double taxation advantages signed with more than 45 countries, since it is proven beyond doubt that “effective management” of the ICIS is carried out from Cyprus.

So, a Cyprus ICIS offers protection to investors (assets with custodian bank, valuation made by independent Administrator and overall fund management by regulated firm), it also gives the promoters the legal framework through which to raise money and invest in any project in the world (it has to be stated in OM), but it also qualifies for all the tax advantages that Cyprus offers.

Disclaimer:

Shavasb Bohdjalian is an approved Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10. The views expressed above are personal and do not bind the company and are subject to change without notice. Investing in markets and trading on leverage is highly risky and it may not be suitable to all investors since it carries a high degree of risk and you can lose more than your initial investment.

Website : www.eurivex.com Email : Shavasb@eurivex.com