Brexit
Page dedicated to following institutions :
- Institutions based in the UK who work in other EU countries under the freedom of establishment or free services
- Institutions based in the UE27 who work in the UK under the freedom of establishment or free services
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As of 1 January 2021, European law is no longer applicable in the United Kingdom. In particular, banking and insurance institutions authorised in the United Kingdom no longer have the right to offer their services in France under the freedom of establishment* or the free provision of services**.
* That is, having a permanent presence in France, for example through a branch.
** This means no permanent presence in France, for example via a digital platform established in the United Kingdom or via brokers.
EUROPEAN AUTHORITIES
Insurance sector (EIOPA) :
(https://www.eiopa.europa.eu/brexit-communication_en?source=search )
- 11 July 2017 opinion on convergence of supervision
- 21 december 2017 opinion on contract continuity
- 18 May 2018 opinion on solvency
- 28 June 2018 on communication to policyholders
- 19 February 2019 Recommendations for the insurance sector in light of the United Kingdom withdrawing from the European Union
EIOPA published the results of the compliance assessment for all NCAs (https://eiopa.europa.eu/Pages/Recommendations-for-the-insurance-sector-in-light-of-the-United-Kingdom-withdrawing-from-the-European-Union.aspx)
ACPR stated its compliance to all recommendations except recommendation 6.
With regard to French positive law, the ACPR was not able to declare itself compliant with recommendation 6 relating to the treatment of British expatriates who have taken out an insurance contract in the United Kingdom or in Gibraltar and who then have moved to EU 27 post-Brexit. This change in risk location requires these expatriates to take out an insurance contract with an insurer authorized to practice in France.
Banking sector (ECB, EBA, ESMA)
Within the Single Supervisory Mechanism (SSM), the European Central Bank (ECB) regularly released its expectations for credit institutions regarding the actions they have to take to be ready for Brexit :
- Relocating to the euro area
- Brexit: banks should prepare for year-end and beyond (supervision newsletter)
The European Banking Authority (EBA) released several opinions on Brexit for both credit institutions and investment firms :
- 12 October 2017 opinion on the issues of the Brexit for banks and the actions they have to take
- 25 June 2018 opinion calling institutions to pursue their efforts to prepare and inform their customers
- 17 December 2018 communication asking institutions to increase their efforts towards their customers
- 1st March 2019 Opinion of the European Banking Authority on deposit protection issues stemming from the withdrawal of the United Kingdom from the European Union
- 8 October 2019 EBA urges continued progress in financial institutions’ preparations for the UK’s departure from the EU
- 29 July 2020 The EBA calls on financial institutions to finalise preparations for the end of the transitional arrangements between the EU and UK
- 9 November 2020 The EBA reminds financial institutions of the need for readiness in view of the Brexit transition period ending on 31 December 2020
- 23 November 2020 EMIR RTS on various amendments to the bilateral margin requirements in view of the international framework as well as on novations from UK to EU counterparties
- 8 December 2020 EBA informs customers of UK financial institutions about the end of the Brexit transition period
The European Securities and Markets Authority (ESMA) released two opinions on Brexit, the first one being general and the second one dedicated to investment firms.
- ESMA issues principles on supervisory approach to relocations from the UK
- OPINION to support supervisory convergence in the area of investment firms in the context of the United Kingdom withdrawing from the European Union
In the second half of 2020, ESMA was asked to communicate regularly on BREXIT:
- 17 July 2020 ESMA tells market participants to continue preparations for the end of the UK transition period
- 28 September 2020 ESMA to recognize three CCPS from 1st January 2021
- 1 October 2020 ESMA updated on 1 October 2020 two statements on the impact of Brexit on MIFID/MIFIR and the Benchmarks rules
- Impact of Brexit on the application of MiFID II/MiFIR
- Impact of Brexit on the Benchmark Regulation (BMR)
- 26 October 2020 ESMA sets out final position on Share Trading Obligation
- 27 October 2020 ESMA updates Statement to adress credit rating from the United Kingdom
On 10 November 2020, ESMA updated three declarations dealing with the impact on the reporting under EMIR and SFTR and on the functioning of ESMA’s databases and IT systems after 31 December 2020, the date on which the United Kingdom-United leaves the EU:
- Statement Brexit EMIR and STFR data
- Statement on the use of UK data in ESMA databases and the performance of MiFID II calculations
- ESMA’s Data Operational Plan following the end of the UK transition period on 31 December 2020
FRENCH AUTHORITIES
Ordonnance BREXIT
The 16th December 2020 Ordonnance n°2020-1595 (in French) on the withdrawal of the United Kingdom from the European Union in the field of financial services was published on the 7 February 2019 in the Journal officiel. (the “French Brexit Ordinance”)
It provides for the implementation of two regulatory measures:
- Brexit order of 22 December 2020 relating to the information of policyholders
- Order of 22 December 2020
ACPR / AMF
- The ACPR and the AMF have been seized by AMAFI with a question relating to transactions between an EU intermediary and a third country intermediary (inter dealer transactions). Indeed, in the light of the provisions of MIFIR (in particular Article 46), some credit institutions and investment firms established in France were concerned that they would no longer be able to carry out OTC transactions on financial instruments with similar entities established in the post-Brexit United Kingdom. Reply Letter (in French).
- 28 September 2016 ACPR-AMF common press release on the exceptional arrangements for authorising entities under ACPR supervision wishing to settle in France.(in French)
- 29 June 2018 ACPR press release on EIOPA and EBA opinions, underlining notably that contracts concluded before UK leave of the EU27 with UK institutions remain valid and must be executed on goof faith (in French).
HAUT COMITE JURIDIQUE DE PLACE
Created at the instigation of the AMF and the Banque de France, the High Legal Committee of the Financial Place of Paris (HCJP) carries out, independently, legal analyses and makes them public. It is composed of lawyers, academics and other qualified individuals as well as representatives of the AMF and the Banque de France. The General Directorate of the Treasury, the ACPR and the Ministry of Justice participate in its meetings.
In the context of Brexit, he has published several reports, among which:
- 12 September 2018 "Impacts Brexit in insurance business "
- 13 October 2018 "BREXIT, Banking and Investment Services"
Contacts
Such institutions (credit institutions, investment firms, payment institutions, electronic money institutions, or insurance companies) that might have questions are invited to contact the Authorisation Directorate (see organisation chart below).
Authorisation Directorate
- Director: Geoffroy Goffinet
- Banks and Investment Firms Division: Jérôme chevy
- Specialised Procedures and Institutions Division: Julia Guérin
- Insurance Institutions Division: Christine Decubre
Updated on: 04/23/2021 12:10