On Dec. 29, ESP GVT informed the regions of deal, of Brexit decree.
ESP GVT informed the autonomous communities (CCAA) of the EU-UK agreement.
Overview
Minister explained that since end of 2017 meetings of the Conference for EU related matters (CARUE) with all the CCAA mainly covered Brexit related topics.
Many actions carried out to reinforce staff in all those areas in which it was necessary e.g. immigration, foreign health, etc; ESP GVT also approved Brexit royal decree-law.
Brexit Royal-Decree Law
RDL establishes temporary adaptation measures to deal with effects of transition end.
All the ministries have participated in its preparation; it contains five chapters and contemplates different activities e.g. labor relations, transport, economic activity.
Healthcare, assistance benefits; even when there is an agreement the UK will become a third country, regulatory and logistical aspects are needed to adapt to new situation.
The measures envisaged are aimed at protecting the interests of citizens and economic operators that may be affected by the end of the transition period.
Emphasized measures are temporary, their validity will cease when period indicated in each case elapses or before, if the instruments called upon to permanently regulate.
Relations with UK in matters covered are adopted in a domestic or international level.
Issues mainly deal with continuity and reciprocity in citizens treatment, labor rights, education, recognition of professional degrees, financial services (various aspects) etc.
Further details on the decree's structure provided; mainly set for Jan. 1 applicability.
Dec. 30, 2020 Official Publication, Financial Services
On Dec. 30, 2020, ESP GVT officially published RDL 38/2020 on Brexit related matters.
Most provisions contained in the royal decree law will enter into force on Jan. 1, 2021.
Arts 4, 9, 11, 14 paragraph 2 will not enter into force in the event that on Jan. 1, 2021 EU-UK future relation agreement is in force covering the matter in those provisions.
However, if UK/EU agreement is provisionally applied and loses validity as not ratified by either party, the articles apply from date on which the agreement losses validity.
Articles relate to professional activity, social security, healthcare, public procurement.
On the same day ESP GVT issued information specifically tailored to financial services.
Referred to art 13 RDL 38/2020 i.e. measures for financial services and aimed at UK financial institutions that currently operate in Spain; it covers three main provisions.
Contracts signed prior to Jan. 1, 2021 between Spanish clients and authorized entities in UK to remain in force per art 13 and by contract clauses (if not in conflict with RDL).
Post transition end UK entities must adapt to being a 3rd state regime, authorization granted by UK authorities may be extended for 6 months (24 months for insurers).
If authorization is required to facilitate relocation or orderly termination of contracts.
This temporary extension of prior authorizations will only allow the management of contracts signed prior to transition end but will not cover new activities.
ESP competent authorities will supervise said activity, may take whatever measures necessary to guarantee legal certainty, safeguard interests of financial services users.
Activities re management of contracts not requiring authorization may continue.
For queries re the above entities must contact ESP CB, ESP CNMV and ESP INS.
Further, ESP CB also published information for credit institutions re cited RDL rules.
Jan. 2021 Update
On Jan. 4, 2021, ESP CNMV announced publication of RDL 38/2020 on Brexit matters.
Feb. 2021 Parliamentary Convalidation
On Feb. 4, 2021, ESP PRL announced conclusion of validation process of the RDL 38/2020 via resolution of Jan. 28, 2021 officially published also on Feb. 4, 2021.
RDLs lose legal validity unless they are convalidated by parliament within 30 days.
Dec. 2022 Art 10.3 Extension
On Dec. 16, 2022, ESP GVT issued Order PCM/1237/2022 re art 10.3 RDL 38/2020.
Council of Ministers, at meeting on Dec. 13, 2022, approved agreement by which the measures in art 10.3 relating to access to unemployment benefits are extended.
Art 10.3 states EU citizens who travel daily to Gibraltar to carry out activity/labor and with residence in Spain that are not within scope of application of the Withdrawal Agreement, will be able to access, until Dec. 31, 2022, unemployment benefits.
That, for insurance periods credited in Gibraltar before and after end of the transition period, without it being necessary to have last contributed in Spain (last contributions).
Art 2 RDL 38/2020 states that measures subject to validity period will cease to be in force for mere passage of time, unless ESP GVT, by agreement extends them.
Since no international agreement yet reached on point with UK re Gibraltar, loss of measure validity is Dec. 31, 2022, it may mean detriment to ESP citizens, citizens of other States residing in Spain, so necessary to extend validity its until Dec 31, 2024.
Art 10.3 validiy extended to Dec. 31, 2024; will cease to apply if, prior to that date EU-UK agreement or bilateral agreement ESP-UK re Gibraltar on access to unemployment benefits with corresponding mutual reimbursement mechanism in its material scope.
Document dated Dec. 16, 2022, was added on Aug. 31, 2023 due to editorial backfill.
Regulators
ESP CB; ESP CNMV; ESP GVT
Entity Types
B/D; Bank; CNSM; Corp; Ins; Inv Co
Reference
OG 301,12/16/2022; Ord PCM/1237/2022, Mt, 12/15/2023; OG 30, PR, 2/4/2021; Res 1//28/2021; PR 1/4/2020; OG, BOE-A-2020-17266, PR, 12/30/2020; RDL 38/2020, PR, 12/29/2020; Brexit; Citation: Order PCM/1237/2022;
