The financial services sector contributes over £132 billion each year to the UK economy, representing around 6.9% of total economic output. While the UK and EU agreed a Brexit deal, the financial services sector remains in somewhat of a limbo.
Some of the core avenues implicated by Brexit include:
- Many national professional qualifications will no longer be recognised.
- The EU has largely not deemed UK rules for financial services as equivalent.
- Financial service providers can no longer rely on the ability to “passport” from the UK into the EU.
- Many UK financial service providers will find that their current appointed representative status is no longer recognized in the EU.
Benefits Of Establishing A Branch In Cyprus
Creating a branch of your UK operation here in Cyprus can assist in alleviating the above post-Brexit issues in a number of ways. This is because you will be able to access Cyprus’ expertise, resolving issues of qualification recognition, and will also benefit from the ability to be authorised under a CySEC-regulated Alternative Investment Fund (AIF). This will help you to resolve passporting issues within the financial services sector. Being under the supervision of a Cyprus-based AIF means you can be registered in Cyprus as a Reserved Alternative Investment Fund (R-AIF) because you are a provider of financial services.
If you are interested in learning more about the benefits of operating in Cyprus, please don’t hesitate to get in touch.
EQ:IQ And The UK Financial Service Sector
At EQ:IQ we have a wealth of experience in providing assistance and support to UK based companies within the financial service sector. The post-Brexit economy has rendered our offering more important than ever.
Our most in-demand services include:
- Company and trust formation
- Regulatory support from a well established and respected regulatory body for financial services
- Banking services
- Audit, accounting and payroll services
- Tax advice and structuring
- Serviced offices and commercial substance
- Access to highly trained and highly qualified professionals