CySEC Extends Application Deadline for Post-Brexit TPR

Cypriot regulator, the CySEC has extended the deadline of taking applications from UK-based firms ready to operate on the EU island nation under TPR.

January 28, 2021 | AtoZ Markets – The Cyprus Securities and Exchange Commission (CySEC) is giving more time to firms willing to apply for its recently introduced Temporary Permissions Regime (TPR).

The regime, established for post-Brexit financial markets, does not require a physical presence in Cyprus for UK firms when providing investment services (including when performing investment activities) solely to professional clients per se and eligible counterparties, based in Cyprus.

The initial deadline for the submission of TPR notifications was set to December 31, 2020. Today, the regulator said that an extension to this deadline is given.

The TPR aims at facilitating a smooth transition to new contracts post-Brexit, concluded on a reverse solicitation basis and for UK firms that wish to continue soliciting Cypriot professional clients and eligible counterparties to establish a physical presence in Cyprus.

CySEC pushed TPR application deadline till February 28, 2021

CySEC explains that it has received a significant number of notifications (more than 70) up until January 28, 2021, several of which were submitted after December 31, 2020. The interested parties have raised practical difficulties due to the short notice provided by CySEC, the operational challenges due to the season’s break, and the bulk of workload they are dealing with due to Brexit.

The regulator notes that it 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. For this reason, and in view of the ongoing inflow of TPR notification, CySEC has decided to extend the deadline for the submission of notifications by UK firms who wish to make use of the TPR up until February 28, 2021.

For the avoidance of doubt, CySEC clarifies that UK firms may in the meantime continue providing investment services (including investment activities) to Professional Clients per se and to Eligible Counterparties based in Cyprus, without the establishment of physical presence, provided that a TPR notification is submitted to CySEC by February 28, 2021.

UK firms operating under the TPR, may continue to provide their services without the establishment of physical presence up until December 31, 2021, where the TPR expires.

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