Gibraltar issues no-deal Brexit guidance for financial services sector

The Government of Gibraltar has issued guidance for companies in the territory’s financial services sector in the event of a no-deal Brexit. The Government of Gibraltar said it intends to use powers in the EU (Withdrawal) Act 2019 (EUWA) to ensure that Gibraltar continues to have a functioning financial services regulatory regime in all scenarios. The EUWA will repeal the European Communities Act 1972 on exit day and converts into Gibraltar domestic law the existing body of directly applicable EU law (including EU Regulations). It also preserves Gibraltar laws relating to EU membership – such as legislation implementing EU Directives. “The UK has unequivocally confirmed that the current access arrangements for Gibraltar financial services firms to access the UK market will continue post-Brexit and Gibraltar has equally confirmed access for UK firms into Gibraltar. Similarly, in the event of no deal, the government will be introducing draft regulations to retain reciprocal market access arrangements between Gibraltar and the UK,” said the Gibraltar Government. The draft Financial Services (Passport Rights and Transitional Provisions) (EU Exit) Regulations 2019, made under the EUWA, will: Retain reciprocal passporting rights for Gibraltar and UK firms in respect of financial services that are subject to regulation under the single-market directives; Include the introduction of transitional arrangements enabling European Economic Area (EEA) firms that currently passport into Gibraltar to continue to do so under a temporary permission for a limited period of time, while they consider if they want to apply for full authorisation in Gibraltar or cease activities; Include the introduction of a restricted temporary permission for pre-existing contractual obligations, enabling EEA firms to continue carrying out regulated activities in Gibraltar where doing so is necessary to perform ongoing contracts to which they were a party before exit day. The government will be supplementing the regulations with an additional set of regulations. These will include detailed changes to existing legislation in order to retain existing market access between Gibraltar and the UK, and retain the main elements of single-market directives to apply between Gibraltar and the UK (such as Solvency II). The Gibraltar Government said it will be introducing a Temporary Permissions Regime, which will allow EEA-authorised firms to continue operating in Gibraltar for a time-limited period, in order to deal with the loss of passporting rights on Gibraltar’s exit from the EU without a negotiated agreement. It added that for those firms wishing to maintain their Gibraltar business on a permanent basis, the regime will provide sufficient time to apply for full authorisation from the Gibraltar Financial Services Commission. Should the Withdrawal Agreement be ratified, there will be a transitional/implementation period between 29 March 2019 and 31 December 2020. “During the implementation period, EU financial services firms operating in Gibraltar, and Gibraltar financial services firms operating in the EU, will be able to continue to undertake regulated activities, either by means of passporting rights or under other relevant EU frameworks,” said the Gibraltar Government. “EU and third-country (non-EU) financial market infrastructures that have existing authorisation or recognition under EU legislation will continue to be able to provide services to Gibraltar, enabling access to financial market infrastructures without disruption.”

Gibraltar issues no-deal Brexit guidance for financial services sector

Want to read this article?

Read Next

Munich Re reorganises P&C underwriting in Asia Pacific, Middle East & Africa

Climate change to cause ‘massive economic damage’

Two-paced upstream energy market falls in favour of buyers

Energy insurer Paratus launches brokerage division

Allianz sells its 51% stake in Allianz Saudi Fransi

Munich Re reorganises P&C underwriting in Asia Pacific, Middle East & Africa

Climate change to cause ‘massive economic damage’

Two-paced upstream energy market falls in favour of buyers

Energy insurer Paratus launches brokerage division

Allianz sells its 51% stake in Allianz Saudi Fransi

Want to read this article?

Read Next

Munich Re reorganises P&C underwriting in Asia Pacific, Middle East & Africa

Climate change to cause ‘massive economic damage’

Two-paced upstream energy market falls in favour of buyers

Energy insurer Paratus launches brokerage division

Allianz sells its 51% stake in Allianz Saudi Fransi

Related Articles