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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 Italy: updated 1 April 2019 Germany: updated 1 April 2019 Ireland: updated 4 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. … 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

Germany: Draft bill on national transition regime following a hard Brexit

The German Federal Ministry of Finance (BMF) has published a draft bill which, inter alia, sets out a national transition regime for UK credit institutions, investment firms and insurance undertakings in case of a hard Brexit. The provisions regarding market access of UK institutions introduced by the draft bill will only apply should the EU … Continue Reading

Draft Political Declaration setting out the framework for the future relationship between the EU and the UK

On 22 November 2018, there was published the draft Political Declaration setting out the framework for the future relationship between the EU and the UK. Amongst other things, the Political Declaration considers the future of cooperation in the financial services sector: the UK and the EU are committed to preserving financial stability, market integrity, investor … Continue Reading

ESMA statement on the contingency plans of CRAs and TRs in the context of Brexit

On 9 November 2018, the European Securities and Markets Authority (ESMA) issued a public statement in order to raise market participants’ awareness on the readiness of credit rating agencies (CRAs) and trade repositories (TRs) for the possibility of no agreement being reached in the context of the UK withdrawing from the EU. Points in the … Continue Reading

Brexit Pathfinder – new hub for financial services clients

To help our financial services clients navigate the legal and regulatory implications of Brexit, we have launched a new Brexit Pathfinder hub. Our Brexit Pathfinder hub is a repository of all the Brexit-related thought leadership, white papers, briefings, videos and blogs published by our financial services regulatory team. The hub is aimed specifically at financial services clients … Continue Reading

BaFin publishes new guidance note on the authorization procedure for credit institutions

The German Federal Financial Supervisory Authority (BaFin) published a new guidance note (Merkblatt) on the authorization procedure for credit institutions. The guidance note provides details on the regulatory requirements for the licensing of credit institutions (e.g. information about the intended business and the applicant, business plan, governance structure, management pursuant, holders of significant participation, capital … Continue Reading

Brexit workshop for foreign issuers of securities organized by BaFin

On May 2017, the German Federal supervisory authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) organized a workshop for foreign issuers of securities. BaFin representatives held various presentations on the possible consequences of Brexit. Three major questions were discussed taking into account various Brexit scenarios: Which issuers of securities prospectuses are concerned? What are the effects on … Continue Reading
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