The Cyprus Securities and Exchange Commission (CySEC) on Wednesday launched a public consultation on a proposed legislative amendment concerning the authorisation of Administrative Service Providers (ASPs).

Specifically, CySEC published a Consultation Paper proposing changes to the Law Regulating Companies Providing Administrative Services and Related Matters (Law 196(I)/2012), which governs ASPs.

The proposed amendment addresses the current practice regarding the lapse of authorisation for ASPs.

Under the new proposal, an ASP’s authorisation would no longer automatically lapse upon the submission of an express waiver by the licensed entity.

Instead, the authorisation would only cease to be valid following a formal decision of withdrawal by CySEC.

This amendment aims to enhance regulatory oversight and ensure the orderly cessation of operations by licensed ASPs.

The proposed framework will allow CySEC to evaluate the specific circumstances surrounding an express waiver and, where necessary, instruct the ASP to take appropriate steps to ensure an orderly winding down of its activities.

CySEC will also be able to review the reasons for the waiver and assess any potential implications for third parties when deemed necessary.

The approach aligns with regulatory practices applied to other entities under CySEC’s supervision.

CySEC has invited interested parties to direct any inquiries regarding the content of the Consultation Paper to its Policy Department via email at [email protected].