United Kingdom

Topic: Brexit

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The Electricity and Gas etc. (Amendment) (EU Exit) Regulations 2020

On 22 September 2020, there was published on legislation.gov.uk The Electricity and Gas etc (Amendment) (EU Exit) Regulations 2020. Six statutory instruments were made under section 8 of the European Union (Withdrawal) Act 2018 to remove deficiencies caused by EU exit, to EU and UK legislation relating to gas and electricity markets: The Electricity and … Continue Reading

FCA launches consultation on the regulation of international firms

On 23 September 2020, the FCA issued Consultation Paper 20/20: Our approach to international firms (CP20/20). CP20/20 is relevant to EEA firms that intend to seek authorisation in the UK in the future, including those entering the temporary permissions regime (TPR), as well as firms from non-EEA countries that have applied or intend to apply … Continue Reading

BoE and PRA consult on changes before the end of the transition period

On 22 September 2020, the Bank of England (BoE) and the Prudential Regulation Authority (PRA) jointly issued a Consultation Paper ‘UK withdrawal from the EU: Changes before the end of the transition period’ (the CP). The CP provides: An update on the BoE’s and PRA’s intended use of the temporary transitional power provided for in … Continue Reading

ISDA article on Brexit and the impact on the derivatives trading obligation and the characteristic of OTC derivatives in the EU and the UK

On 15 September 2020, the ISDA published a paper recommending that the EU and the UK recognise the equivalence of each other’s derivatives trading venues in order to mitigate the impact of the UK’s withdrawal from the EU. The paper explains that equivalence is the best solution for addressing conflicts and avoiding fragmentation of liquidity … Continue Reading

Latest EU Exit SIs for financial services

On 15 September 2020, there was published on legislation.gov.uk: The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020. This statutory instrument amends the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 to implement amendments made by Fifth Anti-Money Laundering Directive (5AMLD). The main changes are made to … Continue Reading

UK and Japan agree historic free trade agreement

On 11 September 2020, the UK Government issued a press release stating that it had secured a free trade agreement with Japan. This is the UK’s first major trade deal as an independent trading nation and will increase trade with Japan by an estimated £15.2 billion. The UK Government states that UK businesses will benefit … Continue Reading

PRA Dear CEO letter: Temporary Permissions Regime – Operational Readiness

On 1 September 2020, the Prudential Regulation Authority (PRA) published a Dear CEO letter from Sam Woods, Deputy Governor and CEO of the PRA to remind firms to be operationally ready for the Temporary Permissions Regime (TPR). The TPR is due take effect at 11pm on Thursday 31 December 2020, which is the point at … Continue Reading

New Bank of England webpage on the Temporary Permissions Regime

On 1 September 2020, the Bank of England (BoE) published a new webpage, which summarises its approach to the Temporary Permissions Regime (TPR). On this new webpage the BoE has confirmed the following: Firms that have submitted a valid Notification or Part 4A application (and not withdrawn) will automatically enter the TPR. Where a firm … Continue Reading

September 40 Minute Briefing: Brexit: Where have we got to and what should you do now?

Wednesday, 2 September 2020 | 8:45 – 10:00 BST We are evolving our successful 40 minute briefings into webinars for financial services professionals. This includes senior management and those in legal, compliance and risk teams who have or are developing financial services expertise. The webinars will be led by senior members of our financial services … Continue Reading

FCA publishes Market Watch Issue 64 focussing on MiFID II implementation after the Brexit transition period

In August 2020 the FCA published its latest edition of Market Watch, issue 64, focussing on the implementation of MiFID II during the Brexit transition period. Importantly, the FCA reminds firms that Brexit temporary transitional powers won’t be applied to transaction reporting rules under MiFID II. Therefore, firm and Approved Reporting Mechanisms (ARMs) must comply … Continue Reading

Brexit: Where have we got to and what should you do now?

Webinar on 2 September 2020 at 8:45am to 10:00am (BST) We are evolving our successful 40 minute briefings into webinars for financial services professionals. This includes senior management and those in legal, compliance and risk teams who have or are developing financial services expertise. The webinars will be led by senior members of our financial … Continue Reading

FMLC letter to Ministry of Justice on the departure from retained EU case law by UK courts and tribunals

On 12 August 2020, the Financial Markets Law Committee (FMLC) published its response to the Ministry of Justice consultation on whether to extend the power under section 26(1) of the European Union (Withdrawal Agreement) Act 2020 (2020 Withdrawal Act). Section 26(1) of the 2020 Withdrawal Act empowers HM Government to designate additional courts and tribunals … Continue Reading

EBA calls on financial institutions to finalise preparations for the end of the transitional arrangements between the EU and UK

On 29 July 2020, the European Banking Authority (EBA) issued a press release reminding financial institutions that the transition period will expire on 31 December 2020, and that UK-based financial institutions will no longer be able to passport their services into the EU. The EBA states that UK financial institutions wishing to operate in the … Continue Reading

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

Government pressed for clarity on future relationship in financial services

On 20 July 2020, the House of Lords EU Services Sub-Committee published a letter it has sent to City Minister John Glen MP about UK-EU equivalence decisions, future UK-EU regulatory cooperation and the Government’s plans for financial services, particularly the role for Parliament in the future regulatory framework. The letter follows Mr Glen’s appearance before … Continue Reading

HM Treasury guidance – COVID-19 related amendments to the CRR and the CRR 2

On 17 July 2020, HM Treasury issued a statement clarifying which amendments made to the Capital Requirements Regulation (CRR) and the Second Capital Requirements Regulation (CRR 2) in response to the COVID-19 pandemic will be transposed by the UK before the end of the transition period. The European Commission made amendments to the CRR and … Continue Reading

ESMA tells market participants to continue preparations for the end of the UK transition period

On 17 July 2020, the European Securities and Markets Authority (ESMA) issued a statement on its website urging market participants to finalise their preparations and implement suitable contingency plans in advance of the end of the transition period. ESMA also refers to its previous Brexit statements, in particular its general opinion to support supervisory convergence … Continue Reading

Commission publishes two updated Brexit readiness notices

On 14 July 2020, the European Commission published two updated Brexit readiness notices to stakeholders in the field of: Market in financial services. Post-trade financial services. The notices replace those that were originally published on 8 February 2018 and set out at a high level the implications of the UK becoming a third country for … Continue Reading

Draft SI: The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020

On 15 July 2020, HM Treasury published a draft statutory instrument, The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (draft SI) together with an explanatory memorandum. The Fourth Anti-Money Laundering Directive (4MLD) was implemented in the UK primarily through the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) … Continue Reading

European Commission publishes a notice to stakeholders on the withdrawal of the UK from the EU (re)insurance market

On 13 July 2020, the European Commission published a notice to stakeholders on the effects of the end of the transition period after which the UK’s relationship with the EU will fundamentally change. The notice is aimed at EU (re)insurance companies and insurance distributors. The Commission advises firms to assess the consequences of the end … Continue Reading

The Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2020

On 26 June 2020, there was published on legislation.gov.uk The Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc, and Transitional Provision) (EU Exit) Regulations 2020 (the SI) together with an explanatory memorandum and impact assessment. Part 2 of the SI makes changes to primary legislation – the Financial Services and Markets Act … Continue Reading
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