Regulatory news: Brexit update
UK Election confirmed: Thu 12 Dec 2019
Political parties are today preparing for a general election campaign after MPs voted (438 v. 20) for a poll to take place on Thursday, 12 December 2019.
EU advice, interim:
“To my British friends, The EU27 has formally adopted the extension. It may be the last one. Please make the best use of this time. I will keep my fingers crossed for you.”
“Access to our markets will be proportional to the commitments taken to the common rules. The agreement we are ready to discuss is zero tariffs, zero quotas, zero dumping. Don’t underestimate the difficulties of the process of ratification. If it is not ratified, we return to zero. Due to the British political situation we are obliged to be patient. We cannot do everything in 11 months, we will need more time.”
Michel Barnier, 29 October 2019
What next, (when)?
What happens next is now dependent on the result of UK Election. The current UK-EU deal may be ratified in time for Christmas. However, this leaves only a transition period until 31 December 2020 for a customised free Trade Agreement (including Financial Services) to be negotiated and enacted, bi-laterally.
Alternatively, the current UK-EU deal may be scrutinised further by MPs, including proposed amendments (e.g. EU Customs treaty) or presented to voters in a further referendum next year.
There is now only a matter of weeks to settle the Brexit legislation. In the meantime, the FCA have now extended their temporary permissions regime (TPR) notification date for EU firms and funds until 30 January 2020. This is now the latest Brexit cliff-edge.
Kneip services: ready (whatever the Brexit)
As before, Kneip continue to stress the key importance of monitoring updates made available by the UK Government, Financial Conduct Authority, European Commission and National Competent Authorities in order to refine no-Deal Brexit planning where necessary (within the time available).
Provided our clients take the necessary Brexit-proofing measures and continue to keep Kneip notified of interim developments (i.e. firm and fund status c/o UK-EU National Competent Authorities), there should be no impact to Products and Services currently delivered either in the UK or across the EU.
As always, in the event of doubt, we ask our clients to contact their Key Account Manager or Business Development Manager and we’ll be happy to help.