CySEC Allows Certain Companies to Operate Under TPR After 31 December 2021

The Cyprus Securities and Exchange Commission (CySEC) has issued a policy statement, saying that it will give certain firms permission to operate under the Temporary Permissions Regime (TPR) until their applications are reviewed.

According to CySEC, 96 companies filed an application to join the TPR as of February 2021, eight of which either did not meet the requirements, or withdrew their applications​. The remaining companies secured a temporary permit to continue to provide their services to professional clients and eligible counterparties in Cyprus, up until 31 December 2021, without having a physical presence in the country.

Several TPR entities sought to continue their solicited activities in Cyprus and in this context relevant applications have been submitted to CySEC.

"The regulator notes that the applications received by CySEC are reviewed in order of priority, creating a series of challenges as it comes to the evaluation's completion in a timely manner. Considering that reviewing applications that entail the establishment of a physical presence within the Republic is a cumbersome procedure, CySEC has decided to proceed with amending Directive 87-04, allowing companies operating under TPR to continue to operate under this regime, until the relevant application is reviewed,"CySEC stated.

CySEC stressed that the policy statement concerns UK companies operating under TPR that either they per se or their group, as the case may be:

• ​attempted to continue their activities by acquiring a physical presence in Cyprus, either by establishing a third-country branch or by establishing a new CIF or acquiring stakes, including qualifying stakes, in an existing CIF and whose applications have not been fully evaluated yet;

• ​will seek to continue their activities through the establishment of a physical presence in Cyprus by filing a relevant application by 31 December.