CySEC Extends Application Deadline for Post-Brexit Temporary Permissions

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.

Smoothing Migration

After the finalization of Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term 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 CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term 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.