The Cyprus Securities and Exchange Commission is urging regulated companies to assess any prospective business impacts on the Brexit process. The Chairman of the Cypriot regulator Demetra Kalogirou sent out a letter addressed to Cyprus Investment Firms (CIFs) this morning.
The contents of the document outline that the companies need to assess the possible impact of the UK’s exit. CySEC has previously issued several circulars regarding the matter.
Cyprus Investment Firms (CIFs) are asked to report to the regulator on the likely effects that Brexit will have on their activities and services. Companies are also asked to submit any suggestions for adopting immediate measures to mitigate the impact on the industry.
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EU License Passporting
Companies that are operating under the jurisdiction of CySEC are advised to explore their business model structure in order to assess the prospective impact of the event. A number of Cyprus-regulated companies offer services in the UK. The loss of EU license passporting could have material impact on firms that heavily rely on the UK market.
CySEC is requesting that submissions be sent via the regulator’s web portal as a free text by the end of business on the 28th of April 2017. The documents should have the following title: “C201 – The impact of the UK’s exit from the EU on the activities and services of Cyprus Investment Firms”.
Companies should include the anticipated impact of Brexit and the remedial measures which they have taken and/or are planning to take.