CySEC is extending the application period for its recently integrated Temporary Permissions Regime (TPR) for all UK firms that wish to apply to it.
The regime was created solely to facilitate the operations of the British financial markets during a post-Brexit period. More specifically, the TPR allows UK brokerage firms to provide investment services in Cyprus without the need to be physically present in the Mediterranean country. However, the new ruling states that UK firms can only provide investment services to professional clients based in Cyprus.
In CySEC’s own words, “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 TPR extends the period in which British financial companies can provide their services to Cypriot pro clients to December 31. 2021.
Before the new deadline was in place, the previous one was pushed to February 28th, 2021, from an even earlier one scheduled for 30th December 2020. The Cyprus Securities and Exchange Commission disclosed that it had received some 70 applications from different firms after the initial December deadline.
The parties raised some issues with CySEC’s short notice period, the challenges that the winter season, and of course the major obstacles and workload resulting from Brexit.
Brexit was finalized without taking into consideration some of London’s primary financial service companies. Many of these major organizations lost their passporting right to offer services to EU countries.