United Kingdom

Topic: Brexit

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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

FCA consults on changes to onshored Securitisation Regulation

On 30 July 2019, the FCA published Consultation Paper 19/26: Draft technical standards on the content and format of STS notifications under the onshored Securitisation Regulation (CP19/26). The European Securitisation Regulation (the EU Securitisation Regulation) came into effect on 1 January 2019. It is part of the Capital Markets Union action plan, outlines the general … 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

Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment etc and Transitional Provision) (EU Exit) (No 2) Regulations 2019: Brexit SI

On 25 July 2019, there was published on the legislation.gov.uk website a draft version of the Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment etc and Transitional Provision) (EU Exit) (No 2) Regulations 2019, together with a draft explanatory memorandum. The draft Regulation is being made using the power in section 8 of … Continue Reading

Joint Bank of England / PRA Consultation Paper 18/19: UK withdrawal from the EU – changes following extension of Article 50

On 25 July 2019, the Bank of England (BoE) and PRA issued a joint consultation paper which contains: an update on the BoE’s and PRA’s intended use of the temporary transitional power; and proposals to fix deficiencies arising from the UK’s withdrawal from the EU and consequential changes in light of the extension of the … Continue Reading

Draft Financial Services (Miscellaneous) (Amendment) (EU Exit) (No 3) Regulations 2019 laid before Parliament

On 16 July 2019, there was published on legislation.gov.uk a draft version of the Draft Financial Services (Miscellaneous) (Amendment) (EU Exit) (No 3) Regulations 2019 together with a draft explanatory memorandum. The content of the Regulations is addressed in our earlier blog here. You can track the financial services Brexit EU Exit statutory instruments (as well as gain access … Continue Reading

AFME highlights no-deal Brexit risks

On 16 July, the Association for Financial Markets in Europe (AFME) published a briefing highlighting the risks that remain for the financial services sector in the event of a no-deal Brexit. The AFME identifies the following areas where further work is needed to mitigate risks of a no-deal scenario and minimise disruption to markets and … Continue Reading

PRA Rulebook (EU Exit) (Amendment) Instrument 2019

On 13 June 2019, the PRA published an updated version of Policy Statement 5/19, regarding the Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018. The Appendix of the Policy Statement has been amended to include B.2A, containing the PRA Rulebook (EU Exit) (Amendment) Instrument 2019. The updated Instrument … Continue Reading

Commission adopts Communication taking stock of preparations for a no-deal Brexit

On 12 June 2019, the European Commission (Commission) adopted a communication on the state of play of preparations of contingency measures for a no-deal Brexit. The Commission has tabled 19 legislative proposals, 18 of which have been adopted by the European Parliament and Council.  The Commission has also adopted 63 non-legislative acts and published 93 … Continue Reading

Financial Services (Miscellaneous) (Amendment) (EU Exit) (No 2) Regulations 2019

On 10 June 2019, the Financial Services (Miscellaneous) (Amendment) (EU Exit) (No 2) Regulations 2019 were made and published on legislation.gov.uk, together with an explanatory memorandum. The Regulations make various technical amendments to the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018; Electronic Money, Payment Services and Payment Systems (Amendment and … 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

ESMA clarifies its position on the share trading obligation in a hard Brexit

On 29 May 2019 ESMA released a statement clarifying its position on the share trading obligation in a hard Brexit scenario. In its view, all EU27 shares, i.e. ISINs starting with a country code corresponding to an EU27 Member State and, in addition, shares with an ISIN from Iceland, Liechtenstein and Norway are within the … Continue Reading

FCA directions extending temporary permissions regimes

On 24 May 2019, the FCA published the following revised directions: Direction for EEA passports and Treaty firms; Direction for EEA UCITS; and Direction for EEA alternative investment funds. The revised directions follow the FCA’s confirmation that the deadline for notifying the FCA in relation to joining the temporary permissions regime would be extended until … Continue Reading

UK regulation after Brexit

Introduction On 16 May 2019, the PRA published a speech given by its CEO, Sam Woods. In his speech Mr Woods discusses what the UK system of financial regulation might look like after the UK leaves the EU. Stringency Mr Woods states that in terms of the stringency of financial regulation, the PRA has a … Continue Reading

FCA Dear CEO letter – wholesale broking firms

On 18 April 2019, the FCA published a Dear CEO letter which explains its view of the key harms that brokerage firms operating in wholesale financial markets pose to their clients and markets. The letter also sets out the FCA’s strategy to mitigate the drivers of those harms. In terms of Brexit, the letter states: … Continue Reading

PS5/19: The Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018

On 18 April 2019, the Bank of England (BoE) and the PRA co-published a joint Policy Statement which includes final versions of policy materials for a hard Brexit including EU Exit Instruments, Supervisory Statements and a Statement of Policy, which were published as ‘near’ final on 28 February 2019. This version of the Policy Statement … Continue Reading

Notification window for temporary permissions regime extended to 30 May 2019

On 12 April 2019, the FCA published notifications amending the Directions concerning the temporary permissions regime in light of the further extended Article 50 process. The FCA has published: Temporary Permission Notification (FSMA); Temporary Permission (UCITS); Temporary Permission (AIFM); Temporary Permission (emoney); and Temporary Permission (payments). These documents extend the notification window for the temporary … Continue Reading