CySEC urges EU firms license applications ahead of the possible Hard Brexit in March 2019.The regulator has stated that any firm that is intending to ensure its application will be considered before a Hard Brexit, needs to have its paperwork completed and submitted to CySEC by the end of September
9 August, AtoZ Markets – The regulator of the financial markets in Cyprus, the Cyprus Securities and Exchange Commission (CySEC) has issued yet another announcement on its website.
CySEC Urges EU Firm License Applications Ahead of Hard Brexit
The latest announcement on CySEC’s website is addressed to market participants is related to the possibility of Hard Brexit that might come in March 2019. The regulator has stated that any firm that is intending to ensure its application will be considered before a Hard Brexit, needs to have its paperwork completed and submitted to CySEC by the end of September.
Earlier this July, European regulator ESMA has issued a warning to licensed financial institutions in EU and that they should prepare for the possibility of Hard Brexit. Since Brexit terms have not been agreed upon yet, it is quite possible that MiFID II passporting between the EU and UK will come to an end. Therefore, all the UK firms will have to either give up their EU clients or shift them to any other EU subsidiary they have.
CySEC in its official announcement states:
“To facilitate the thorough application and examination process for new authorisations, entities wishing to relocate to the Republic of Cyprus, be authorised for regulated services and become operational by 30 March 2019, are advised to submit their applications to CySEC as soon as possible and no later than the end of September 2018, in order to allow their case to be reviewed.”
CySEC Recorded an inflow of applications from FCA-licensed firms
As the response from the market, the regulator has seen an increase in CIF license application in Cyprus by the UK firms that are licensed by the FCA.
The regulator also notes that all the relevant information and application forms required for authorization and the relevant announcement concerning the Authorisation process can be found on CySEC website.
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