Ahead of the Brexit, the Cyprus Securities and Exchange Commission (CySEC) announced their establishment of a Temporary Permissions Regime (TPR) which applies to UK Investment Firms authorized and regulated by the FCA. The TPR aims to facilitate the smooth post-Brexit transition for Cyprus Investment Firms (CIFs) having arrangements with UK firms following the brexit deadline of 31st December 2020.

The Cyprus TPR, as a national regime provides the opportunity to UK investment firms that do not operate via a Cyprus branch, to permissibly solicit and enter into new contracts with per se professional clients or eligible counterparties in Cyprus on a cross-border basis until 31 December 2021. UK investment firms wishing to make use of the Cyprus TPR must submit the notification Form  87-04-01 to CySEC by 31 December 2020.

• the interested UK Investment Firm shall provide its entity identification and authorization details (as applicable), the list of investment services and activities, as well as ancillary services under MiFID II, which it intends to continue offering to Cyprus on a cross-border basis to such professional clients and eligible counterparties, ONLY.
• The relevant notification should be emailed to CySEC at TPR@cysec.gov.cy.

From 1 January 2022 onwards UK Investment Firms that provide investments services on the TPR basis and wish to continue soliciting per se professional clients or eligible counterparties in Cyprus, are required to establish a Cyprus branch or apply for a Cyprus Investment Firm (CIF).

SALVUS Team supports a few reputable UK Investment Firms with a new application to get authorized as a CIF or on the acquisition of an existing one. We remain at your disposal should you have any questions on the TPR. We will be glad to support you find a solution appropriate to your needs. Contact us at info@salvusfunds.com

#StayAhead

Should you be interested to read about relevant topics on the licensing procedure of a Cyprus Investment Firm (CIF), please visit the selected articles below:

• Cyprus, CySEC, MiFID Investment and Ancillary Services
• CySEC, Setting up a CIF, types & application fees
• CySEC CIF Application: All steps until activation
• The Upgraded Legal Framework of the Investor Compensation Fund

The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.