Brexit Bulletin, 31 July 2020

Jul 31, 2020

 

In today’s Brexit Bulletin – the European Banking Authority has called on financial institutions to finalise preparations for the end of the transition period between the EU and UK. Also if you’re based in NI/UK, find out what grants you can apply for to get funding for recruitment, training and IT improvements if your business completes customs declarations.

“Finalise post-Brexit preparations or risk enforcement actions”, warns European Banking Authority

The European Banking Authority (EBA) has called on financial institutions to finalise preparations for the end of the transition period between the EU and UK. In a recent press statement, the EBA has reminded financial institutions that with the end of the transition period between the EU and UK on 31 December 2020, the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis (passporting) will end as well.

As per the European Commission’s Preparedness Notice to stakeholders in the field of Banking and Payment Services, the EBA has outlined the following steps for financial institutions in the UK wishing to operate in the EU:

  1. Finalise preparations and effective establishment in the EU as agreed with relevant competent authorities

    Financial institutions wishing to operate in the EU and offer services to their EU customers should ensure they have obtained the necessary authorisations and effectively establish themselves before the end of the transition period.

     

  2. Preparedness of payment and electronic money institutions

    The EBA warns UK-authorised payment and electronic money institutions wishing to continue to offer services to EU-based customers that it is illegal for them to provide payment or electronic money services in the EU after 31 December 2020, unless they have been adequately authorised beforehand by an EU competent authority.

     

  3. Communication to customers

Financial institutions affected by the UK withdrawal from the EU, should provide adequate information to their EU customers regarding the availability of services after the end of the transition period.

 

Apply for grants if your business completes customs declarations

HMRC have made available three grants to help businesses with increased customs obligations following the end of the Brexit transition period. Businesses can apply to get funding for the following provisions:

  1. Training that helps your business to complete customs declarations and processes
    • 100 per cent of the actual costs of externally provided training, up to a limit of £1,500 for each employee
    • Partial funding for internal training, up to a limit of £250 for each employee on the course.
  2. Recruiting new staff to help your business complete customs declarations: Available funding: £3,000 towards recruitment costs for each new employee, and up to £12,000 to cover the salary costs for each new or redeployed employee

 

  1. IT improvements to help your business complete customs declarations more efficiently: 100 per cent of the costs of IT expenditure

 

As PricewaterhouseCoopers (PwC) is administering the grants for HMRC, interested applicants can apply online through PwC. For more information, visit the dedicated page on the GOV.UK website.