On 17 December 2018, a draft of The Collective Investment Scheme (Amendment etc) (EU Exit) Regulations were laid before Parliament. Our blog of 10 October 2018 discusses the Regulation. On the same date a draft of The Long-term Investment Funds (Amendment) (EU Exit) Regulations 2019 were also laid before Parliament. Our blog of 20 November 2018 discusses this Regulation.
In addition, HM Treasury has published a draft of The Financial Services Contracts (Transitional and Saving Provision) (EU Exit) Regulations 2019 together with an explanatory memorandum . The explanatory memorandum explains that where EEA financial services providers do not enter the UK’s temporary permissions regimes in a no deal Brexit they may not be able to meet existing contractual obligations as performing regulated activities in the UK without these permissions could be a criminal activity. The purpose of the draft statutory instrument is therefore to provide a run-off mechanism to several UK temporary permissions regimes which will allow existing contracts to continue being serviced post-exit: the temporary permissions regime (TPR) for FSMA firms, the TPR for payments and e-money institutions, the temporary recognition regime for central counterparties and the temporary registration regime for trade repositories. This will mitigate the risk of a residual cliff-edge for providers that are not captured by the above temporary regimes.