CySEC announces Brexit Information Hub to help UK firms during transition
“The launch of the Brexit Information Hub is aimed at offering guidance to those firms that wish to continue working in Cyprus and to allow UK firms that are currently reviewing their post-Brexit arrangements to gain a better understanding of the regulatory environment in Cyprus and in the EU in general.”
The Cyprus Securities and Exchange Commission has announced a dedicated section on its website to serve as a Brexit Information Hub. The financial watchdog intends to facilitate the navigation of Brexit-related information and the compliance of interested parties with legal obligations following the transitional period of the UK’s withdrawal from the EU.
CySEC is launching the Brexit Information Hub in conjunction with the Temporary Permissions Regime (TPR). This allows UK financial services firms with no physical presence in Cyprus to continue to provide investment services to professional clients and eligible counterparties in Cyprus for a limited period of time.
Demetra Kalogerou, Chair of CySEC said: “With the deadline for TPR notifications approaching on 28 February, the number of UK firms that have submitted a notification is encouraging, and reflects the strong interest among these companies for maintaining their operations in Cyprus for the delivery of investment services. At CySEC we are committed to always finding new ways to improve the financial markets.
“There are strong ties between the EU and the UK markets and we have advised all interested parties to carefully review their activities and to analyze the impact of Brexit. The launch of the Brexit Information Hub is aimed at offering guidance to those firms that wish to continue working in Cyprus and to allow UK firms that are currently reviewing their post-Brexit arrangements to gain a better understanding of the regulatory environment in Cyprus and in the EU in general.”
The hub contains Q&As per regulated sector, including questions in relation to the Trade and Cooperation Agreement, as well as announcements issued by CySEC, and Circulars addressed to CySEC regulated firms. The above-mentioned TPR is also covered in the Q&As of the Brexit Information Hub.
CySEC has received a significant number of notifications. The interested parties have inter alia raised practical difficulties due to the short notice provided by CySEC, the operational challenges due to the season’s break, and the bulk of workload they are dealing with due to Brexit.
CySEC has decided to extend the deadline for the submission of notifications by UK firms who wish to make use of the TPR up until 28 February 2021 and to amend the CySEC Directive DI 87-04 and Policy Statement PS-02-2020 accordingly.