Firms are advised to submit their applications to CySEC as soon as possible and no later than the end of September 2018.
Shortly after the European Securities and Markets Authority (ESMA) posted a Public Statement stressing that market participants need to prepare for the so-called “hard Brexit”, the Cyprus Securities and Exchange Commission (CySEC) also issued an update on the matter.
The CySEC announcement, published today, concerns the timely submission of requests for authorisation by entities wishing to relocate to another EU member state due to the United Kingdom withdrawing from the European Union.
ESMA has clarified that by March 30, 2019, firms must have a fully authorized legal entity located in the European Union to continue providing services in the EU.
”To facilitate the thorough application and examination process for new authorisations, entities wishing to relocate to the Republic of Cyprus, be authorised for regulated services and become operational by 30 March 2019, are advised to submit their applications to CySEC as soon as possible and no later than the end of September 2018, in order to allow their case to be reviewed”, CySEC says.
Enquiries are accepted via the following email address: firstname.lastname@example.org
The announcement by CySEC lacks any explanation on why firms willing to relocate outside of the UK would choose Cyprus as the host of their EU headquarters. Although it is hard to expect any marketing content in an announcement issued by a regulator, it is difficult to see why a company would choose to have its reputation associated with an island that is still associated with retail FX companies with suspicious track records and binary options firms.
The effort to establish an Innovation Hub appears to be a step in the right direction by the Cypriot regulator but we have yet to see how this plan materializes.