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
United Kingdom decision to leave the European Union might have consequences for institutions in the banking and insurance sector located in UK and using the passport mechanism to carry out whole or part of their activities in others EU countries under the freedom to provide services or under the right of establishment (i.e. branches or other forms of permanent presence). In the same way this leave could affect EU27 institutions working in the UK.
European authorities and French authorities have adopted regulations, guidelines and opinions in this respect. The list below recalls the main ones.
Insurance sector (EIOPA) :
- 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 respect to recommendation 6, UK and Gibraltarian insurance undertakings affected by this situation are invited to proceed to passporting notifications to their Home Competent Authorities in the coming weeks and before Brexit date, so as to benefit from French Brexit Ordinance regime (see below section). This regime would allow them to continue honoring their contracts covering policyholders having moved or moving to France after Brexit date. Click here to read the note.
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 :
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
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
The 6th February 2019 Ordonnance n°2019-75 (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 three regulatory measures:
- The 22nd March 2019 Decree n°2019-224 on the approval of interbank settlement systems or settlement systems for financial instruments governed by the law of a third country provided for in Article L. 330-1 of the Monetary and Financial Code.
- The 22nd March 2019 Arrêté on the information of policyholders and subscribers by foreign enterprises no longer in one of the situations referred to in Article L. 310-2 of the Insurance Code.
- The 22nd March 2019 Arrêté setting the adaptation period following the withdrawal of the United Kingdom from the European Union referred to in Article 4 of the Ordonnance n°2019-75.
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"
Such institutions (credit institutions, investment firms, payment institutions, electronic money institutions, or insurance companies) that might have questions to ask or projects to present to ACPR in this respect are invited to send an email to the following address:
The Authorisation Directorate (see organisation chart below) will reply as soon as possible in the most suitable form (written message, meeting...)
- Director: Jean-Claude Huyssen
- Deputy Director: Geoffroy Goffinet
- Banks and Investment Firms Division: Jérôme chevy
- Specialised Procedures and Institutions Division: Julia Guérin
- Insurance Institutions Division: Julie Briand
Updated on: 11/08/2019 09:33