Topic: Brexit

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ISDA Brexit FAQs (version 8)

On 21 July 2020, the ISDA published version 8 of its Brexit FAQs. The following FAQs have been updated to the position as at 30 June 2020 and therefore do not reflect any developments after that date: Q16 – After IP completion day, what is the ability of financial services firms established in the UK … Continue Reading

ECB Brexit blog: banks must prepare for the end of the transition period

On 9 July 2020, the European Central Bank (ECB) issued a blog stating that banks must prepare for the end of the transition period. At the start of the blog the ECB warns banks that the relief measures that have been put in place to support the economy during the COVID-19 pandemic do not extend … Continue Reading

European Commission letter to HM Treasury on approach to equivalence assessments and decisions

On 2 March 2020, we reported that HM Treasury had published a letter it had sent to Valdis Dombrovskis, European Commissioner for Financial Stability, Financial Services and Capital Markets Union concerning the UK’s preparations for assessments of financial services equivalence. In that letter the UK Government confirmed that it was committed to meeting the end … Continue Reading

Council gives go-ahead for talks to start and adopts negotiating directives

On 25 February 2020, the Council of the European Union adopted a decision authorising the opening of negotiations for a new partnership with the UK, and formally nominating the European Commission as the EU’s negotiator. The Council also adopted negotiating directives which constitute a mandate to the Commission for the negotiations. The Council decision and … Continue Reading

EP resolution: proposed mandate for negotiations for a new partnership with the UK

On 12 February 2020, the European Parliament (EP) published the text of a resolution concerning the proposed mandate for negotiations for the EU’s new partnership with the UK. The resolution notes that whilst the EP is supportive of the EU constructively negotiating a balanced, ambitious and comprehensive free trade agreement with the UK, by its … Continue Reading

Is the UK still a member of the EEA?

The European Free Trade Association FAQs on Brexit make a number of statements clarifying the UK’s position as regards EEA membership. Such statements include: The UK ceased to be a Contracting Party to the EEA Agreement after its withdrawal from the EU on 31 January 2020. This follows from the two-pillar structure and Article 126 … Continue Reading

Commission recommendation on mandate for opening negotiations for new partnership between UK and EU

On 3 February 2020, the European Commission (Commission) published its recommendation for a Council of the EU decision authorising the negotiations for a new partnership with the UK. Page 4 of the recommendations contains the draft text of a Council. The Annex on page 8 sets out the Commission’s proposals for the future UK-EU relationship … Continue Reading

ESMA statement on governance and reporting obligations post-Brexit

On 31 January 2020, the European Securities and Markets Authority (ESMA) published a statement providing an update on governance and reporting obligations for UK entities following the UK’s withdrawal from the European Union. From 1 February 2020, the UK’s FCA will no longer be a member of ESMA’s Board of Supervisors or participate in any … Continue Reading

OJ: Commission Implementing Decision amending Implementing Decision on temporary equivalence of the UK regulatory framework for CCPs

On 23 December 2019, there was published in the Official Journal of the EU Commission Implementing Decision (EU) 2019/2211 of 19 December 2019 amending Implementing Decision (EU) 2018/2031 determining, for a limited period of time, that the regulatory framework applicable to central counterparties (CCPs) in the UK is equivalent, in accordance with the European Markets … Continue Reading

Commission adopts Implementing Decision amending Commission Implementing Decision on temporary equivalence of UK regulatory framework for CCPs

On 19 December 2019, the European Commission (Commission) adopted an Implementing Decision (Amending Decision) amending Implementing Decision (EU) 2018/2031 (Temporary Equivalence Decision) regarding the temporary equivalence of the UK’s regulatory framework for central counterparties (CCPs) under the regulation on over-the-counter derivatives, CCPs and trade repositories (EMIR). For further information on the Temporary Equivalence Decision, see … Continue Reading

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