On 31 January 2020, the European Securities and Markets Authority (ESMA) published a statement providing an update on governance and reporting obligations for UK entities following the UK’s withdrawal from the European Union.
From 1 February 2020, the UK’s FCA will no longer be a member of ESMA’s Board of Supervisors or participate in any of ESMA’s other governance bodies, as set out in the terms of the Withdrawal Agreement.
ESMA reminds firms that EU law will continue to apply to the UK, as if it were a member state, during the transition period / implementation period up until 31 December 2020. This means that the rights and obligations for UK entities will continue to apply such as reporting and notification obligations under the revised Markets in Financial Instruments Directive, the Markets in Financial Instruments Regulation, the European Markets Infrastructure Regulation, the Central Securities Depositories Regulation and the Alternative Investment Fund Managers Directive. ESMA will also continue to directly supervise registered credit rating agencies, trade agencies, trade repositories and securitisation repositories established in the UK.
Over the next eleven months, ESMA will continue monitoring the application of EU law to and in the UK and will closely monitor developments in preparation for the end of the transition period.