CySEC has issued a Policy Statement (available here), relating to its decision to further amend Directive 87-04, in an effort to ensure the smooth transition of UK groups / firms operating under the Temporary Permissions Regime (TPR), until they establish physical presence in Cyprus.
CySEC introduced TPR, so that UK firms can continue to provide investment services without physical presence in Cyprus, under the condition that they only offer their services to eligible counterparties and/or professional clients based in Cyprus.
In this respect, CySEC amended Directive DI87-04, allowing companies to continue operating under the TPR regime, until their application to establish a branch or a new CIF or acquire stakes including qualifying stakes in an existing CIF (i.e. physical presence in Cyprus), is reviewed by CySEC. In case of a successful assessment of such an application, a period of additional six (6) months will be granted by CySEC, in order to ensure smooth and compliant onboarding of clients and for such physical establishments to become fully operational.
The TPR entities that will be eligible to continue operating under the TPR after 31st of December 2021, will be listed in a bespoke section on CySEC’s website. The rest of the TPR entities must cease their actively solicited operations in Cyprus by 1st of January 2022.