Withdrawal Agreement Passporting

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When we receive notification of the incoming passport from an EEA supervisory authority, the depth of our review is proportional to the potential impact of the company on our objectives, the relevant EU directive and the technical standard. However, businesses should not expect the current passport provisions to continue after the end of the transition period. This means that you need to anticipate a number of possible scenarios for the end of the transition period, including the possibility that the activities you carry out will not be covered by agreements between the UK and the EU. If before the 31st. As of January 2020, no withdrawal agreement is concluded between the UK and the EU, the UK will leave the EU that day without a deal, unless the UK and the EU agree on a further postponement of the day of withdrawal. Companies wishing to have a MiFID II passport must inform us by filling out the appropriate form in the miFID II technical standards. Forms must be submitted to PRA-passporting@bankofengland.co.uk. The PRA will be the main regulator for companies that have a passport under the CRD and the Solvency II Directive. Incoming passport companies should contact the regulatory authority of their home country if they intend to do business in the UK. The home state regulator will inform the PRA of the company`s intention to do business in the UK. We will consult with the FCA and update the FS registry.

The EU sees the end of October as the final deadline for signing a trade deal with the UK. If an agreement is reached during this period, both parties must ensure that each agreement is ratified in time for its entry into force no later than 1 January 2021. In today`s perspective, however, there are significant gaps between the EU and the UK in the areas of state aid, fisheries, a level playing field and governance. The Withdrawal Agreement as amended by the draft includes a one-off extension of the implementation period through agreements between the UK and the EU, either until 31 December 2021 or until 2022. Ursula von der Leyen, the new president of the European Commission, warned that it was “impossible” to negotiate a comprehensive trade deal by the end of 2020, although British Prime Minister Boris Johnson said it was “extremely likely” that a trade deal would be reached within that timeframe. Whatever the possible form of the UK`s withdrawal from the EU, UK and EEA financial companies will have to take action before 31 January 2020. For some EEA companies, this includes enrolling in the Financial Conduct Authority`s (FCA) temporary authorisation scheme to ensure they can continue to benefit from the passport scheme in a no-deal Brexit scenario. .


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