Following the expiration of the transition period agreed between the EU and the UK, Investment Firms from the UK are considered as third-country firms. In light of the absence of an equivalence decision from the European Commission, UK Investment Firms can provide services to professional clients and eligible counterparties on a solicited basis through a branch.
What is the Temporary Permission Regime (TPR)?
In order to avoid disruption, the Cyprus Securities and Exchange Commission (“CySEC”) launched a Temporary Permission Regime (the “TPR”), which does not require a physical presence in Cyprus for UK firms when providing investment services.
This allows UK Investment Firms to continue providing investment services solely to professional clients and eligible counterparties, in order to allow for the smooth transition to new contracts 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 Cyprus.
Which companies are affected by the TPR?
The TPR concerns Investment Firms:
- which currently qualify as investment firms;
- whose member state was the UK;
- which until the expiration of the withdrawal period have availed of the freedom to provide services;
- that provide investment services to professional clients and to eligible counterparties based in Cyprus; and
- which qualify as third-country firms, after 31 December 2020.
What is the benefit of the TPR?
The TPR allows UK Investment Firms to provide investment services in Cyprus without having a branch under the observance of a notification procedure on the condition that such services are offered only to professional clients and/or eligible counterparties.
CySEC has extended its initial deadline to submit the aforementioned notification until 28 February 2021. UK firms who submit the notification may continue providing investment services (including investment activities) to professional clients and to eligible counterparties based in Cyprus, without the establishment of a physical presence until 31 December 2021.
Do you need assistance with the TPR or want to apply for a new CySEC licence?
Our team of experts supports a number of reputable investment firms. We assist clients with compliance and administrative matters as well as applications for the authorisation of Cyprus Investment Firms or the acquisition of existing ones.
Do get in touch with us by sending an email to [email protected] in order to discuss how we can better assist you with:
- Obtaining authorisation for your Cyprus Investment Firm
- Developing and reviewing your compliance strategy
- Minimise Brexit disruption by continuing enjoying the freedom of providing services on a cross border basis within the European Economic Area
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