EFG International is expanding its presence in Cyprus after receiving regulatory licences from the Cyprus Securities and Exchange Commission (CySec) and the Central Bank of Cyprus (CBC).
The Zurich-headquartered banking group has had a presence on the Mediterranean island for the past six years.
Now, as a direct result of Brexit, a representative office of EFG Private Bank will open in Limassol; while EFG Cyprus, a subsidiary investment firm of EFG Private Bank (UK), will set up shop in the capital city of Nicosia.
Both are expected to be fully operational by early February 2021.
Existing relationships
The offices will be overseen by Demetrius Pisiaras, market head for Cyprus at EFG Private Bank (UK) and chair of the new subsidiaries.
Having been with EFG since 2002, Pisiaras has already built a team of client relationship officers in Cyprus, which will be further supported by the two offices.
The driver behind the move is to further increase EFG’s “exposure to markets with long-term growth potential”, the banking group said.
Brexit decision
Richard Thomas, head of UK region of EFG International, said: “The opening of our offices in Cyprus will allow us to expand our international reach and to maintain a greater proximity to our local client base following the UK’s departure from the European Economic Area.”
He said the firm’s “in-house product and service offering enables us to provide comprehensive financial solutions and advice to our client in Cyprus”.
“A select number of UK client relationship officers have been certified in Cyprus to provide investment services to ensure our London-based Cypriot market expertise continues to drive growth in the region.”
Short-term reprieve
The announcement comes a day after CySec announced a two-month extension for firms looking to take advantage of its temporary permissions regime.
The TPR does not require a physical presence in Cyprus for UK firms when providing investment services solely to professional clients and eligible counterparties based on the island.
It expires on 31 December 2021, after which services must cease or a presence must be established in Cyprus.
The deadline for submission was 31 December 2020, but has now been extended to 28 February after the watchdog received more than 70 notifications for interested parties.
This was likely driven by the absence of financial services from the Brexit agreement.
