The Cyprus Securities and Exchange Commission (CySEC) issued a warning to British brokers Thursday that time is running out, and it’s running out fast. With the Brexit deadline less than eight months away, the regulator has urged brokers seeking authorization in Cyprus to submit their applications by the end of September this year.
The less than two-month away deadline is to allow the watchdog enough time to properly review each case before Brexit on March 29, 2019. For brokers wanting to register in other European Union (EU) countries, time is of the essence.
CySEC adds to the list of warnings from EU regulators and financial authorities
The warning from CySEC follows a public announcement from the European Securities and Markets Authority (ESMA). In the statement, ESMA clarified that once Britain leaves the bloc on March 30, 2019, firms must have a fully authorized legal entity in one of the EU 27 countries if they want to continue to provide services within the EU.
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The warnings from ESMA and CySEC seek to raise awareness that there is no guarantee a transitional period will be agreed upon. As a result, brokers should prepare for the worst to be on the safe side.
With the Brexit deadline getting closer and closer, regulators and authorities are continuously urging financial institutions to be prepared. Earlier this year in June, Finance Magnates reported that the European Banking Authority also had issued a warning to banks that they should not rely on a transitional period after March 2019.
At the time, the EU authority said: “the time for the required actions to be taken is reducing. Financial institutions should not rely on public sector solutions, as they may not be proposed and/or agreed. The recent political agreement on a transition period, while welcome, does not provide any legal certainty.”