The Problem
Many UK Financial Services providers will find that their current AR status is no longer recognized in the EU.
This means that they cannot continue offering services to EU customers as they once did.
Even if their fund is based in the EU, as a UK business, it cannot provide any services for that fund without EU regulation.
A Possible Solution
Although each scenario will require separate consideration, in general, a UK provider of Financial Services can be registered in Cyprus as a R-AIF, under the supervision of a Cyprus AIF.
As a R-AIF, the UK Company can offer all of its services (as it did before) to its EU (and some third Country) customers.
Registration of a R-AIF with the Cyprus Securities and Exchange Commission takes around one month, is inexpensive and flexible.
Benefits of Cyprus
- Well established and respected regulatory body for financial services
- Part of EU and EEA
- Low corporation tax rates
- Booming finance and tourism
- Similar common law basis for the recognition of companies and trusts
- Low setup and annual costs for companies
- Simple MOSS (Mini One Stop Shop) registration process
