CySEC approves 88 UK firms to operate without office until year-end

The Cyprus Securities and Exchange Commission established a Temporary Permissions Regime (‘TPR’) for UK firms when providing investment services.

The TPR regime does not require UK-based financial services firms to have a physical presence in Cyprus when dealing with professional clients and eligible counterparties based in the country.

The regime is designed to facilitate the jurisdiction transition on account of Brexit as UK firms will lose the EU passport.

CySEC received a significant number of notifications, several of which were submitted after 31 December 2020, which led the regulator to extend the deadline up until 28 February 2021.

Now, the financial watchdog has revealed 96 six UK firms have applied to the TP regime, seven of which were deemed as inadmissible based on the eligibility criteria, and one was withdrawn.

The remaining 88 UK firms will enjoy Temporary Permission to provide investment services to professional clients and eligible counterparties, based in Cyprus up until 31 December 2021.

In conjunction with the Temporary Permissions Regime (TPR), CySEC also launched the Brexit Information Hub, intended 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.

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.

The launch of the Brexit Information Hub is aimed at offering guidance to those firwwms 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.