Brexit – CySEC announces Temporary Permissions Regime for UK investment firms

On 22 December 2020, the Cyprus Securities and Exchange Commission (CySEC) issued a press release announcing the introduction of a Temporary Permissions Regime (TPR) in respect of the provision of investment services and conduct of investment activities by UK investment firms to eligible counterparties and professional clients in Cyprus after the expiry of the Brexit transition period on 31 December 2020.

Alongside the press release, CySEC has also issued Policy Statement PS-02-2020 outlining the rationale for the TPR.

The TPR will be introduced by way of an amendment to CySEC’s Directive DI 87-04 for the provision of services by third country firms to eligible counterparties and professional clients.

In particular, UK investment firms which duly join the TPR may continue to provide services to eligible counterparties and professional clients in Cyprus for an additional 12 months following the expiry of the transition period, that is to say until 31 December 2021.

UK investment firms wishing to benefit from the TPR must notify CySEC by 31 December 2020 at TPR@cysec.gov.cy with a completed notification form Form 87-04-01.

CySEC’s press release can be found here.

CySEC’s Policy Statement can be found here.

CySEC’s Form 87-04-01 can be found here.