With less than five months before the UK leaves the EU there is no final consensus on a withdrawal agreement, the European Commission has made no equivalence decision vis-à-vis the UK, nor have co-operation agreements been signed between the Financial Conduct Authority (FCA) and Member States’ supervisory authorities. There are however indications that the two sides are edging closer to a final agreement on the withdrawal agreement and the UK Government has said that firms can continue to plan on the assumption that a deal will be reached. Some recent speculative press reports have also indicated that a deal on financial services is nearly agreed. However, the UK Government is also planning for a no deal scenario recently issuing a large number of statutory instruments to ensure that the UK continues to have a fully functioning financial services regulatory regime when the UK leaves the EU on 29 March 2019. Even if a deal is reached these measures may still be relevant after any transition period.
In this article Grania Baird and Kya Fear consider the current state of the Brexit process in the context of financial services, outline the UK’s “onshoring regime” set out in the draft secondary legislation with a particular focus on the investment management sector, and highlight key implications for firms.
Read the full article here.
This publication is a general summary. It should not replace legal advice tailored to your specific circumstances.
© Farrer & Co LLP, November 2018