The Cyprus Securities and Exchange Commission (Cysec) has amended one of its directives to allow UK companies to operate under the Temporary Permissions Regime (TPR) until they establish a physical presence in the country.
The TPR was introduced in December 2020 so that UK firms could continue to provide investment services without setting up shop in Cyprus.
As of February 2021, 96 businesses applied to join the TPR, eight of which either did not meet the requirements or withdrew their application.
The remaining companies secured a temporary permit to keep providing services in Cyprus until 31 December 2021.
But as the path to receive approval to have a physical presence on the island is a “cumbersome procedure”, Cysec will change the directive 87-04 to allow companies operating under the TPR to continue offering their services until their application is reviewed.
After approval, firms will have six months to onboard clients to the physical office and to become fully operational.
Cysec added: “The entities that will be able to continue to operate based on TPR after 31 December 2021, will be published in a relevant section of the Cysec website. The remaining TPR entities will have to cease their activities in the Republic by 1 January 2022.”