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Topic: Brexit

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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

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

On 29 October 2019, there was published on the legislation.gov.uk website the Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment etc and Transitional Provision) (EU Exit) (No 2) Regulations 2019, together with an explanatory memorandum. The Regulations are being made to address deficiencies in retained EU law in the Regulation on over-the-counter derivative … Continue Reading

Markets in Financial Instruments Exemptions Directions 2019 published

On 28 October 2019, there was published on the legislation.gov.uk website the Markets in Financial Instruments Exemptions Directions 2019 (Directions). The Directions have been made by HM Treasury in exercise of the power conferred by regulation 3(1)(g)(a) of the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc.) (EU Exit) Regulations 2019. Under these … Continue Reading

FCA final rules concerning SCA in the event of a hard Brexit

On 25 October 2019, the FCA published Policy Statement 19/26: Brexit – Regulatory Technical Standards for Strong Customer Authentication and Common and Secure Open Standards of Communication (PS19/26). In PS19/26 the FCA follows up on its earlier consultation paper containing proposals that in the event of a no-deal Brexit it would make its own regulatory … Continue Reading

The Financial Services (Miscellaneous) (Amendment) (EU Exit) (No.3) Regulations 2019

On 24 October 2019, there was published on legislation.gov.uk, The Financial Services (Miscellaneous) (Amendment) (EU Exit) (No.3) Regulations 2019 together with an explanatory memorandum. In the event of a no-deal Brexit the statutory instrument amends: The Criminal Justice Act 1993; The Insider Dealing (Securities and Regulated Markets) Order 1994; The Financial Services and Markets Act … Continue Reading

FMLC letter on resuscitation of Financial Services (Implementation of Legislation) Bill

On 23 October 2019, the Financial Markets Law Committee (FMLC) published a letter to HM Treasury on the Financial Services (Implementation of Legislation) Bill (Bill). The FMLC considers it essential that the Bill is resuscitated and passed to ensure continuity and certainty for the financial services sector. The FMLC warns that uncertainty about whether the … Continue Reading

Cross-Border Distribution of Funds, Proxy Advisors, Prospectus and Gibraltar (Amendment) (EU Exit) Regulations 2019: Brexit SI

On 23 October 2019, there was published on the legislation.gov.uk website the Cross-Border Distribution of Funds, Proxy Advisors, Prospectus and Gibraltar (Amendment) (EU Exit) Regulations 2019, together with an explanatory memorandum. The Regulation is being made using the power in section 8 of the European Union (Withdrawal) Act 2018 (EUWA) in order to address deficiencies … Continue Reading

No-deal Brexit ISDA FAQs

On 17 October 2019, the International Swaps and Derivatives Association (ISDA) published a set of No-Deal Brexit FAQs. The FAQs provide a high level summary of the key impacts in the case of a no-deal Brexit on the over-the-counter derivatives market and ISDA documentation. These FAQs are additional to the ISDA’s previously published Brexit FAQs … Continue Reading
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