The Cyprus Securities and Exchange Commission (CySEC) has extended the deadline of taking appreciation from United Kingdom-based companies willing to operate on the EU island nation under the temporary permissions regime.
The application deadline was pushed till February 28, 2021, from the previously decided December 31, 2020. The regulator cited that it has received more than 70 applications from companies after the deadline that applied before December end.
After the finalization of Brexit with a deal that did not consider London’s primary financial services, the British companies offering services in the 27-country bloc lost their so-called passporting rights of licenses.
The Cypriot temporary permissions regime will allow the UK companies to operate in the bloc for a while, thus streamlining the migration of the businesses. However, these companies can only offer services to professional clients based in Cyprus.
This permission will allow the UK companies to operate till the end of December 2021 without needing any physical presence in Cyprus.
“The TPR aims at facilitating a smooth transition to new contracts post-Brexit, concluded on a reverse solicitation basis and for UK firms who wish to continue soliciting Cypriot professional clients and eligible counterparties to establish a physical presence in the Republic,” the regulatory notice stated.
“CySEC recognizes that there are indeed justifiable reasons for the extension of the said deadline and is of the view that such extension will further facilitate a smooth post Brexit transition.”
Meanwhile, Cyprus has become a sought-after jurisdiction for many UK-based brokers to continue their European operations. However, other European regulators raised concerns over the continued non-compliance by the Cypriot companies.