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The ECC extends the deadline for UK companies to join the CIP

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The ECC extends the deadline for UK companies to become part of the PKA

The Cyprus Securities and Exchange Commission (“EKK”), based on the Directive ΟΔ87-04 (2) and the Policy Statement ΔΠ-02-2020 of the EKK (see here), Provisional Licensing Regime (“PKA”) for the provision of investment services (including investment activities) by UK companies in Cyprus, without requiring their physical presence / establishment, provided that the provision of these investment services is limited to professional clients and / or eligible counterparties based in Cyprus. EKK had already issued a previous Press Release on this issue on 22 December 2020 (available here) while the then deadline for submitting applications for inclusion in the PKA was 31 December 2020.

The PKA aims to facilitate the smooth transition to contracts based on the inactive attraction of professional clients and eligible counterparties from UK companies, as well as to provide time for UK-based companies wishing to continue provide investment services to by definition professional clients and eligible counterparties in Cyprus, on the basis of active attraction, to acquire a physical presence in the Republic of Cyprus.

The ECC has received a significant number of applications (over 70) by the date of issuance of this Press Release, several of which were submitted after 31 December 2020. Stakeholders reported practical difficulties due to the short deadline transferred by the ECC, the difficulties in their operation due to the holidays and the volume of work they have faced due to Brexit.

The ECC acknowledged that there were good reasons for extending the said deadline, and considered that this extension would further facilitate a smooth transition to the post-Brexit era. To this end, and in view of the continuous flow of applications for inclusion in the CIP, the ECC has decided to extend until 28 February 2021 the deadline for the submission of applications for inclusion in the CIP by UK companies wishing to do so, as well as to amend regarding the Directive ΟΔ-8704 and the Policy Statement ΔΠ02-2020 of ΕΚΚ respectively.

For the avoidance of doubt, the ECC clarifies that in the meantime, UK companies can continue to provide investment services (including investment activities) to default business clients and eligible counterparties based in Cyprus, without requiring a physical presence in Cyprus for these companies, provided that a relevant application for inclusion in the PKA will be submitted to the ECC by February 28, 2021. UK companies operating under the PKA can continue to provide their services without physical presence until 31 December 2021, when the relevant license expires.

Source: www.philenews.com

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