On 24 December 2020, we posted an update on the EU27 temporary transitional measures.
Since posting the update colleagues have notified us of the following:
Luxembourg: On 24 December 2020, the CSSF announced that it was publishing Regulation 20-09 of 14 December 2020 amending Regulation 20-02 of 29 June 2020 on the equivalence of certain third countries with respect to supervision and authorisation rules for the purpose of providing investment services or performing investment activities and ancillary services by third-country firms. Through this modification, with effect from 1 January 2021, the United Kingdom is granted the national equivalence status by the CSSF and is added to the list of third countries and territories which are considered as applying equivalent supervision and authorisation rules as those set out for the purpose of Article 32-1(1) second paragraph of the Law of 5 April 1993 on the financial sector, as amended. This article addresses the provision of MiFID services to eligible counterparties and professional clients in Luxembourg on a cross-border basis. The text of the Regulation can be accessed here. For further information please contact Manfred Dietrich.
Germany: The German regulator has now published its reaction to the EU/UK free trade agreement. The German regulator states that the provisions of this agreement will apply to financial services only to a limited extent and repeats that the UK service providers will no longer be able to use the European passports as of January 2021. Therefore, the German regulator has not announced any relief measures to UK entities so far. For further information please contact Michael Born.
Italy: On 28 December 2020, colleagues in our Milan office stated that there were no further developments. For further information please contact Pietro Altomani.
Netherlands: The Dutch government does not consider it necessary to implement the temporary transition regime for UK investment firms that was proposed previously. According to the Dutch government, financial institutions have had sufficient time to amend contracts and/or relocate activities and sufficient preparations have been made. Colleagues in the Netherlands have recently issued this blog. For further information please contact Floortje Nagelkerke.