The Cyprus Securities and Exchange Commission (‘CySEC’), the financial regulatory Authority of Cyprus, has launched a dedicated section on its website to serve as a Brexit Information Hub (accessible here), aiming at facilitating a seamless 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 Brexit Information Hub is being launched in conjunction with the Temporary Permissions Regime (‘TPR’) which enables UK financial services firms that do not have a physical presence in Cyprus to continue to provide investment services to per se professional clients and eligible counterparties in Cyprus for a limited period of time (see here).
The TPR aims at facilitating a smooth transition to new contracts post-Brexit concluded on a reverse solicitation basis for UK firms operating in Cyprus – this means that when clients seek them out, they can do business.
For UK firms who wish to continue soliciting Cypriot professional clients and eligible counterparties in Cyprus, they must establish a physical presence in the Republic. CySEC has received a significant number of notifications (more than 70), several of which were submitted after the deadine of December 31, 2020. CySEC has extended the deadline until February 28, 2021.
Demetra Kalogerou, Chair of CySEC said: “With the deadline for TPR notifications approaching on February 28, 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 analyse 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 Brexit Information Hub contains: A comprehensive set of Q&As per regulated sector; all Brexit related announcements issued by CySEC, and; all Brexit related Circulars addressed to CySEC regulated firms;
The Brexit Q&As include general questions in relation to the Trade and Cooperation Agreement and focused Q&As covering a wide range of the regulatory perimeter, spanning from TPR and markets and investment services to fund management and prudential requirements.
CySEC remains committed to fostering compliance with the applicable rules; thus the Q&As may be updated where necessary with additional content.