United Kingdom

Topic: Brexit

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HM Treasury letter on post-Brexit equivalence in financial services

On 27 January 2020, the Department for Exiting the European Union (DExEU) published a letter from John Glen MP, Economic Secretary to the Treasury, to Lord Kinnoull, European Union Committee Chair, on equivalence in the area of financial services post-Brexit. Mr Glen begins the letter by reiterating that the financial services provisions in the revised … Continue Reading

European Union (Withdrawal Agreement) Bill 2019-20 receives Royal Assent

On 23 January 2020, the European Union (Withdrawal Agreement) Bill 2019-20 received Royal Assent becoming the European Union (Withdrawal Agreement) Act 2020 (the Act). Amendments made to the Bill in the House of Lords were overturned by MPs sitting in the House of Commons. Article 126 of the Withdrawal Agreement states that there shall be … 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

Queen’s speech – New Government sets out legislative agenda

Following the Conservative victory in the General Election, Her Majesty the Queen gave her speech opening a new parliamentary session and setting out the Government’s legislative agenda for the coming year. In this briefing, Glen hall, Partner and Head of Government Relations and Public Policy, and Daniel Nevzat, Government Relations Manager, explore the key policy … Continue Reading

UK General Election and next steps for Brexit

Following the UK General Election the Conservative Party has won a majority of at least 76 seats in the House of Commons, its biggest election victory since 1987. With one constituency left to declare at the time of writing, the Conservatives have 364 seats, Labour 203, the SNP 48, the Liberal Democrats 11, the DUP … Continue Reading

Commission confirms intention to extend Brexit temporary equivalence regime for UK CCPs

On 15 November 2019, the European Commission (Commission) published a keynote speech given by its Vice-President and European Commissioner for Financial Stability, Financial Services and Capital Markets Union, Valdis Dombrovskis, on the priorities of the new Commission for sustainability and green finance. In his speech, Mr Dombrovskis stated: “As you know, central clearing has been … 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

FCA statement on UK EMIR validation rules

On 7 November 2019, the FCA published an updated statement on the reporting of derivatives under the UK EMIR regime in a no-deal scenario. The statement explains that in the event that the UK withdraws from the EU without an agreed deal on 31 January 2020, UK reporting counterparties and trade repositories (TRs) should use … Continue Reading

FMLC addendum to paper on legal uncertainty arising out of Brexit – the provision and application of third country regimes in EU legislation

On 5 November 2019, the Financial Markets Law Committee (FMLC) published an addendum to its July 2017 paper (see previous blog here) which focused on issues of legal uncertainty arising out of the UK’s withdrawal from the European Union without retaining access to the Single Market under any other legal provision. The addendum provides key … Continue Reading

The Prospectus Directive and Transparency Directive Equivalence (Variation) Directions 2019

On 6 November 2019, there was published on legislation.gov.uk the Prospectus Directive and Transparency Directive Equivalence (Variation) Directions 2019 (Directions). The Directions have been made by HM Treasury in exercise of the power conferred by regulation 2(1) and paragraph 9 of Schedule 1 of the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) … Continue Reading

Financial services related inquiries close following dissolution of UK Parliament

On 6 November 2019, there was published on parliament.uk an update concerning the UK General Election 2019. Following the dissolution of the UK Parliament on 6 November, all select committees have ceased to exist, and until the committees are reappointed after the General Election on 12 December 2019, there are no chairs or members of … Continue Reading

HM Treasury letter confirming UK Government seeking equivalence post-Brexit

On 31 October 2019, HM Treasury published a letter from John Glen, Economic Secretary to the Treasury, to Sir William Cash, House of Commons European Scrutiny Committee Chair (Committee), addressing questions raised by the Committee relating to the UK’s access to the EU financial services markets after Brexit. In the letter, Mr Glen confirms that … Continue Reading

FCA Handbook Notice 70

On 31 October 2019, the FCA published Handbook Notice 70. This Handbook Notice provides a summary of the changes the FCA board made to the Handbook on 26 September 2019 and 24 October 2019. The relevant instruments are: Overdrafts (Information and Tools) Instrument 2019; Mortgages (Regulatory Reporting) Instrument 2019; Conduct of Business Sourcebook (Retirement Outcomes Review) … Continue Reading

FCA and FOS Handbook instrument amending voluntary jurisdiction rules in DISP

On 31 October 2019, the FCA published the Exiting the European Union: Dispute Resolution: Complaints (Amendments) Instrument 2019 (the Instrument). The Instrument amends certain provisions in chapter 2 of the Dispute Resolution: Complaints Sourcebook (DISP) relating to the Financial Ombudsman Service’s voluntary jurisdiction rules by replacing references to “1 April 2019” with references to “exit … Continue Reading

FCA revised directions extending notification window to enter temporary permissions regime

On 31 October 2019, the FCA published the following revised directions for: EEA firms with passports and Treaty firms; EEA collective investment schemes; EEA alternative investment funds; authorised payment institutions and EEA registered account information service providers; and e-money institutions. The directions amend the previous versions in the FCA Handbook and extend the notification period … Continue Reading

UK Government amends definition of exit day in European Union (Withdrawal Act) 2018 to 31 January 2020

On 30 October 2019, the UK Government made the European Union (Withdrawal) Act 2018 (Exit Day) (Amendment) (No. 3) Regulations 2019. The Regulations amend the definition of “exit day” from 31 October 2019 to 31 January 2020, in order to reflect the most recent extension of the Article 50 period by up to three months. … Continue Reading

FCA statement on Brexit delay

On 30 October 2019, the FCA published a statement on the delay of the UK’s withdrawal from the European Union. The statement confirms that firms do not need to take further action to implement Brexit contingency plans for 31 October 2019. As a result of the delay, the FCA will be extending the deadline for … 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

FCA speech on the future of financial services regulation in UK

On 29 October 2019, the FCA published a speech (delivered on 28 October) by Nausicaa Delfas, FCA Executive Director of International, on the future of financial services regulation in the UK. Ms Delfas begins her speech discussing preparations for Brexit, noting that the FCA has undertaken extensive preparations geared towards a no-deal exit, and has … Continue Reading