Along with the PRA’s publication of consultation papers on its intended approach to supervision of third country firms, the Treasury, FCA and ESMA have recently issued statements providing an update on provision to enable firms across Europe to continue to do business after Brexit.
The Treasury has announced that if necessary (ie depending on the outcome or progress of negotiations) it will pass legislation:
- for a ‘temporary permissions’ regime that will enable EEA firms and funds operating in the UK to continue to do so after Withdrawal, and
- to ensure that contractual obligations, such as insurance contracts, which are not cover by such a temporary permissions regime can continue to be met.
The FCA’s statement indicates that they will publish further details of their approach to such a temporary permission regime in 2018.
EIOPA has published an opinion on service continuity in insurance following withdrawal. The opinion, addressed to national competent authorities, directs supervisory authorities to take certain actions including ensuring that undertakings develop contingency plans setting out measures to prevent insurance activity without authorisation, and to ensure service continuity after withdrawal. The opinion directs that such contingency plans must not rely on any anticipated arrangement between the EU and the UK for the continuation of access of UK insurance undertakings to the European insurance market or vice versa, unless and until such an arrangement is agreed.