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Joint trade associations letter to European Commission requesting extension of Brexit temporary equivalence for UK CCPs

On 12 November 2019, the Association for Financial Markets in Europe (AFME) published a joint letter, in collaboration with 13 other trade associations, to the European Commission (Commission) on temporary equivalence and recognition in relation to UK central counterparties (CCPs). The decision to allow the European Securities and Market Authority (ESMA) to temporarily recognise UK … Continue Reading

ECB reminder to banks to implement Brexit plans

On 13 November 2019, the European Central Bank (ECB) published an article on its website reminding banks that operational risk increases as they delay the implementation of their Brexit plans. The article repeats the same warning issued in August 2019 before the third extension of the Article 50 period (see previous blog) with an increased … Continue Reading

UK and EU formally agree three-month extension to Article 50 period

On 30 October 2019, the European Council published its decision (the Decision) taken in agreement with the United Kingdom to extend the Article 50 period, for the third time, by up to three months until 31 January 2020. The European Council formalised the agreement by written procedure to avoid the need for another summit. Article … Continue Reading

ESMA update on Brexit preparations

On 30 October 2019, the European Securities and Markets Authority (ESMA) issued a press release confirming that its previous statements relating to its preparation for a no-deal Brexit will no longer apply as of 31 October 2019 (see previous blog here). This announcement follows the European Council’s decision to extend the Article 50 period relating … Continue Reading

ESMA agrees MoU with ASIC on benchmarks

On 20 October 2019, the European Securities and Markets Authority (ESMA) published a memorandum of understanding (MoU) between itself and the Australian Securities and Investments Commission (ASIC)  setting out cooperation arrangements in respect of Australian benchmarks. The MoU was signed on 9 October 2019. On 29 July 2019, under Article 30 of the Benchmarks Regulation … Continue Reading

EBA urges continued progress in Brexit preparations

On 8 October 2019, the European Banking Authority (EBA) published a communication on the remaining issues related to the preparation by financial institutions for the withdrawal of the UK from the EU. In this communication, the EBA warns firms and national competent authorities against complacency and urges them to continue progress on contingency planning. In … Continue Reading

ESMA update statements on preparations for a no-deal Brexit

On 7 October 2019, the European Securities and Markets Authority (ESMA) published a statement providing an update on the UK’s withdrawal from the European Union and preparations for a possible no-deal Brexit scenario on 31 October 2019. In the statement, ESMA confirms that the reference date in all of its previously published measures and actions, … Continue Reading

ECB advises banks to ramp up no-deal preparations

On 14 August 2019, the European Central Bank (ECB) published an article on its website calling on banks to step up their preparations for a no-deal Brexit at the end of October 2019. The ECB asserts that banks have transferred significantly fewer activities, critical functions and staff to euro area entities than originally foreseen as … Continue Reading

Commission sets out its equivalence policy with non-EU countries

On 29 July 2019, the European Commission issued a communication setting out its overall approach to equivalence and recent legislative developments in terms of how the Commission grants equivalence to non-EU countries. It also describes how the Commission and the European Supervisory Authorities monitor the situation in those non-EU countries after equivalence decisions have been … Continue Reading

ESMA speech on international cooperation and Brexit considerations

On 4 June 2019, the European Securities and Markets Authority (ESMA) published a speech from its Chair, Steven Maijoor, on international cooperation in financial regulation and supervision. Key points to note in the speech include: as of October 2018, the EU had granted equivalence to thirty-five jurisdictions across eight securities and accounting files; ESMA’s view … Continue Reading

France clarifies the form and content of the information to be provided by UK insurers to their French insureds and policyholders following Brexit in the event of a no-deal

On 22 March 2019, the French Ministry of Economy and Finance passed a decree (the Decree) implementing the provisions of the ordinance n° 2019-75 of 6 February 2019, introducing a contingency plan for the financial institutions sector in connection with the withdrawal of the United Kingdom (UK) from the European Union (EU) (the Ordinance). As … Continue Reading

AFME equity selling restriction wording for Brexit

On 26 March 2019, the Association for Financial Markets in Europe (AFME) published a document containing wording setting out the selling restrictions for equity transactions for use following a no-deal Brexit or a Brexit with a deal/transitional period, as applicable. The wording within the document covers those selling restrictions that are most frequently used in … Continue Reading

Brexit: Doing business in the EU – Updated

Recent updates Belgium: 10 April 2019 We have produced a colour coded heat map and table identifying the temporary emergency measures being implemented in EEA jurisdictions, and how financial services provides can benefit from these measures. We recommend that this resource be read in conjunction with this article. You will find our heat map and table … Continue Reading

EIOPA issues recommendations to European National Competent Authorities to minimise risks to policyholders in the event of a no-deal Brexit

On 19 February 2019, the European Insurance and Occupational Pensions Authority (EIOPA) issued nine recommendations to the National Competent Authorities (NCAs) with responsibility for the supervision of insurance undertakings and insurance intermediaries in European Union (EU) Member States. The recommendations provide the NCAs with guidance on EIOPA’s expectations in relation to the treatment of UK … Continue Reading

Bank of England and ESMA agree MoUs

On 4 February 2019, the Bank of England announced that it had agreed, with the European Securities and Markets Authority (ESMA), Memoranda of Understanding (MoUs) regarding cooperation and information-sharing arrangements with respect to central counterparties (CCPs) and central securities depositories (CSDs). The MoUs follow the adoption by the European Commission in December 2018 of temporary … Continue Reading

ESMA clarifies the reporting and handling of derivative data in case of no-deal Brexit

On 1 February 2019, the European Securities and Markets Authority (ESMA) issued a public statement on how derivatives data reported under EMIR should be handled in the event that the UK leaves the EU without a Withdrawal Agreement (i.e. a hard Brexit scenario). In the event of a hard Brexit, UK counterparties would not be … Continue Reading

ESMA statement on UK CCPs’ and CSDs’ recognition applications for a no-deal Brexit scenario

On 20 December 2018, European Securities and Markets Authority (ESMA) issued a public statement stating that it is ready to review UK central counterparties’ (CCPs) and Central Securities Depositories’ (CSDs) recognition applications for a no-deal Brexit scenario. ESMA states that it aims to recognise UK CCPs in a timely manner, where the four recognition conditions … Continue Reading

Commission implements “no-deal” Contingency Action Plan in specific sectors

On 19 December 2018, the European Commission (Commission) issued a press release stating that it has started to implement its “no deal” Contingency Action Plan. This delivers on the Commission’s commitment to adopt all necessary “no deal” proposals by the end of the year, as outlined in its second preparedness Communication of 13 November 2018. … Continue Reading

Germany: Update regarding outsourcing by German fund management companies to UK asset managers following a hard Brexit

Subject to certain conditions set out in the AIFM- and UCITS-Directives, as transposed into domestic law, German fund management companies may outsource tasks to service providers. Such outsourcing is particularly relevant for the popular business model of the so-called “Master-KVG”-structure in Germany: Fully compliant with the prohibition of a letter box, the German fund management … Continue Reading

LMA paper a no-deal Brexit and the European loan market

On 5 December 2018, the Loan Market Association (LMA) published a paper on the consequences of a no deal Brexit scenario on the European loan market (the Paper). The Paper emphasises a number of regulatory issues which may arise in a no deal scenario, particularly due to: the wide usage of wholesale loan products across … Continue Reading

In a no-deal Brexit how will you track changes to UK law?

In recent weeks you would have noticed numerous blogs describing statutory instruments that HM Treasury has been publishing in the event of a no-deal Brexit scenario. These statutory instruments, commonly known as EU Exit instruments, are part of the UK’s contingency preparations and onshore  EU law that is retained under the European Union (Withdrawal) Act … Continue Reading

ESAs final report on draft RTS amending the risk mitigation techniques for OTC derivatives under EMIR

Introduction On 27 November 2018, the European Supervisory Authorities (ESAs) published a final report with draft regulatory technical standards (RTS) proposing to amend the Commission Delegated Regulation on the risk mitigation techniques for over-the-counter (OTC) derivatives not cleared by a central counterparty (CCP) (bilateral margin requirements) under the European Market Infrastructure Regulation (EMIR). The draft … Continue Reading
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