CySEC introduces post-Brexit permissions for UK firms providing liquidity to Cyprus FX brokers

​​The Cyprus Securities and Exchange Commission (CySEC) announced that it has established a Temporary Permissions Regime, which does not require physical presence in Cyprus for UK firms when providing investment services (including when performing investment activities) solely to professional clients and eligible counterparties, based in Cyprus.

CySEC stated that this is in order to allow for a smooth transition to new contracts post-Brexit, concluded on a reverse solicitation basis, and for UK firms who wish to continue soliciting Cypriot professional clients and eligible counterparties to establish a physical presence in the Republic.

The regulator stated that there are currently 52 UK firms providing services to Cyprus Investment Firms (CIFs), such as those acting as their Liquidity Providers, and in total there are 86 CIFs that have trading arrangements with UK firms.

The Cyprus Temporary Permissions Regime is designed to assist the post-Brexit transition for these firms.