On 17 January 2019, there was laid before Parliament a draft version of The Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019, together with an explanatory memorandum.
The draft statutory instrument forms part of the UK Government’s contingency planning for a no deal Brexit and is made under the European Union (Withdrawal) Act 2018. It addresses deficiencies in relation to the EU’s equivalence framework and retained EU law following the UK’s exit from the EU. It provides Ministers with a temporary power, for up to twelve months after exit day, to make equivalence directions and exemption directions specified in the instrument for the EU and EEA member states. The power is intended to be used in cases where the UK Government determines that it is necessary to make an equivalence decision for the EU and EEA member states quickly and efficiently to support UK market activity and the continuity of cross-border business. The use of the temporary power within the draft statutory instrument is not expected where alternative, specific transitional arrangements are in place. The draft statutory instrument gives functions to the UK financial services regulators to provide technical advice to HM Treasury to support third country equivalence assessments. It also revokes certain EU Regulations that are no longer appropriate once the UK has left the EU (for instance the Regulations establishing the European Supervisory Authorities) and corrects deficiencies in some retained EU equivalence decisions (set out in schedule 2 of the draft statutory instrument). Finally, the draft statutory instrument creates an obligation for HM Treasury and the UK regulators to enter into and maintain an Memorandum of Understanding to provide clarity on the coordination of equivalence activities between them.
You can track the financial services Brexit EU Exit statutory instruments (as well as gain access to our Brexit resources) on our Brexit Pathfinder hub. Registration is free via the NRF Institute portal. Conformed copies of the EU Exit statutory instruments are available exclusively through our PathfinderPLUS service. To gain access to PathfinderPLUS, please contact Jochen Vester or Simon Lovegrove.