Brexit statutory Instruments - a series of briefings
As the country processes the result of Thursday’s general election and the political drama that entailed, we reflect on what it means for financial institutions’ Brexit plans.
BrexitOur online toolkit enables EEA banks and investment firms providing wholesale services in or into the UK to identify and scope how the FCA and (where relevant) PRA rules will change for them on entry into, and on exit from, the temporary permission regime. Please click here for further details including pricing options and key contacts.
Brexit EEA firms currently passporting into the UK are contingency planning for a “hard Brexit” on which their authorisation to continue to conduct regulated activities in the UK ends abruptly. Following publication of details around the temporary permissions regime (TPR) HM Treasury has now published the legislative framework to allow those EEA firms that do not enter the TPR or which exit the TPR without authorisation to continue to service existing contracts for a limited period to enable an orderly wind down of their UK business. This will be permitted either via Supervised Run-off with temporary limited permissions or Contractual Run-off with temporary exemptions depending upon the circumstances of the firm in question.
This bulletin helps firms to understand the availability, scope and regulatory implications of the run-off regimes. This understanding is crucial both for EEA firms that will not be authorised or deemed authorised to conduct regulated activities in the UK post Brexit and also for UK clients and counterparties of such EEA firms.
The TPR SI will provide temporary relief to allow EEA firms to be authorised with permission to continue operating in the UK after exit day for a transitional period.
The purpose of this SI is to allocate responsibility for ‘onshored’ EU financial services to UK authorities.
The CRR SI is intended to ‘onshore’ the EU Capital Requirements Regulation and its delegated Regulations, which amend associated provisions in UK implementing legislation in the case of a hard Brexit.
The MiFID SI seeks to provide a backstop that ensures the continued functioning of MiFID II in the UK, were the UK and EU to fail to come to agreement on a withdrawal deal by 29 March 2019.
The BRRD SI seeks to ensure that the UK’s Special Resolution Regime works legally and practically once the UK has left the EU. The BRRD’s policy drivers will remain central to the framework, ensuring continuity and certainty on Brexit. The BRRD SI assumes that there will be no cooperation with EU authorities.
The AIFMD SI makes amendments to retained EU law related to AIFMs to ensure that it continues to operate effectively in the UK once the UK has left the EU. This SI is closely intertwined with the UCITS SI (see below).
The UCITS SI makes amendments to retained EU law related to UCITS to ensure that it continues to operate effectively in the UK once the UK has left the EU.
The EMIR SI seeks to provide a backstop that ensures the continued functioning of EMIR and related UK legislation in the UK, were the UK and EU to fail to come to agreement on a withdrawal deal by 29 March 2019
The UK Regulator's Approach - our commentary
Brexit impact on asset and fund managers - July 2016
Asset managers who are managing a UCITS or AIF - June 2016
Financial Services statutory instruments under the EU (Withdrawal) Act 2018
This table provides an up-to-date summary of those statutory instruments that have been published in draft, laid and/or approved. Please note that the table is updated every Monday
Temporary Permissions Regime - regulator publications:
FCACP18/29: Temporary permissions regime for inboundfirms and funds (October 2018)
Binding technical standards and rule-set changes:
Post-Brexit options in the Luxembourg financial sector
In this publication from August 2019, our Luxembourg team provide a summary of available options for UK firms currently passporting their activities to Luxembourg or intending to provide services to Luxembourg clients in a post-Brexit environment. The summary therefore focuses on options available to UK firms currently holding a CRD 4, PSD 2, EMI 2 and MiFID 2 licence.
New French Brexit-Related Ordinance
On 7 February 2019, ordinance no. 2019-75 relating to the preparatory measures in connection with the United-Kingdom’s withdrawal from the European Union in respect of financial services (the Ordinance) was published.
The Ordinance provides for specific measures that will be applicable as from the withdrawal from the European Union without an agreement entered into pursuant to Article 50 of the Treaty of the European Union (i.e. Hard Brexit).
This publication sets out the ordinance no. 2019-75 and provides a summary.
EU27 "No deal" Brexit Law Tracker
This table summarises the domestic measures that Governments in EU27 member states are publishing in order to prepare for the UK’s withdrawal from the EU. The table monitors these developments in each member state and provides a high-level summary of the relevant provisions, particularly as they pertain to the financial services sector. These measures will not apply to a UK business which does not currently benefit from a passporting right. Please note that the table is updated every Monday.