Spotlight on: Financial Services

Dec 16, 2020

Deal or no deal, the passporting of financial services between the EU and the UK will no longer be possible next year and extensive preparations have already been undertaken to avoid high levels of market disruption on 1 January 2021. 

The EU may recognise that the UK’s regulatory or supervisory regime is equivalent to the corresponding EU regime. At present, temporary equivalence decisions have already been granted in a number of areas to ensure financial stability in the immediate aftermath of Brexit.  The European Commission continues to assess whether it can grant further temporary equivalence decisions. The EU has said it won’t be granting permanent equivalence to the UK.

The UK has introduced a Temporary Permission Regime (TPR) which allows EEA firms to operate for three years in the UK after the passporting regime ends and they can seek authorisation from UK regulators. Firms need to apply to the TPR scheme before the end of this year – 30 December 2020.

The European Commission has published Readiness Notices in the area of Financial Services, including:

 

You can also read more about financial services and equivalence here.