The second day of educational content opens at the iFX Expo International 2017 with the panel titled: "Setting up in Cyprus: everything you need to know."
Local Cypriot expert service providers and professionals of taxation, HR, and licensing are serving valuable tips to cut costs and make both new and existing local offices in this long hailed industry hub more effective.
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"80% of the brokers get 80% of the media heat." #forex #cyprus @iFXEXPO pic.twitter.com/VzfEOPCTfA
The panel is moderated by Laoura Salveta, Director of Marketing, 120 Advertising. The panellists are: Alexandros Constatinou, Director, MAP S.Platis; Yannis Pettemerides, freelance auditor / compliance advisor; Donna Stephenson, co-founder/Director, Global Recruitment Services; and Claudiu Ghebaru, FX Business Consultant, Market Advisors Solutions.
Constatinou: "The industry is under the spotlight from local and EU regulators due to many reasons. We see an increase in compliance from EU countries about CY companies. This type of items damaged Cyprus’ reputation. With proper management we can bring back the good name of Cyprus as financial hub.
The online industry is responsible for 4000-5000 jobs (brokers only), and 4%-5% of the GDP. The industry is very important to the economy, especially in Limassol. Training in the financial industry is crucial. The changing regulatory landscape demands a constant learning process, we’ve recently seen new institutions founded especially to train employees for the industry."
How big is the trading industry in #Cyprus? 3-4% of GDP, 4-5K direct #jobs, and don't forget the billboards pic.twitter.com/GVV07Mcbnv
— Finance Magnates (@financemagnates) May 25, 2017
Pettemerides: "All of the industry has reputation issues, not only Cypriot companies. It has always been like that. The online industry is the second contributor to the local income after tourism in terms of cash flow.
The secret to getting an EU license is to take your books to the regulator. And make sure you really need the license. You need to prove that you have financial backing not only to set up the brokerage but also to maintain it and that the funds come from legitimate sources. After that you need to recruit the right people to manage the business. You must have a real business plan, not just a template. That’s how you will convince the regulator that you are serious. You need to convince the regulator that your company will be in full compliance."
Stephenson: "We see operations moving to Bulgaria and Romania. There’s a small decrease in applications from EU companies. There’s been a lot of job creation because of the industry. reducing unemployment rates. Brokers, PSPs, tech providers creating jobs, especially sales jobs. We have the talent. We definitely see an increase in salaries, there’s a competition."
Ghebaru: "Cyprus had a competitive edge tax-wise. CySEC banned bonuses and limited Leverage . Moreover, brokers that want to operate in other EU countries require local authorization.
The million dollar question is whether CySEC will allow outsourcing out of the country. In Romania we have a lot of people with a second language. The Romanian economy has a big portion of outsourcing to the auto industry for instance."
