UK GVT Financial Services in Brexit

On Jun. 30, UK GVT issued amending rules on financial services.

  • Issued Financial Services (Miscellaneous Amendments) (EU exit) Regulations 2020.
  • Address failures of retained EU law to operate effectively, and other deficiencies arising from the imminent withdrawal of the United Kingdom from the European Union.
  • Address certain deficiencies under European Union (Withdrawal) Act 2018.
  • Particularly those deficiencies under section 8(2), paragraphs (a), (b), (c), (d) and (g).
  • Purpose
  • Made to ensure coherent, functioning UK financial services regulatory regime post-exit.
  • Makes amendments to address deficiencies in UK domestic law, retained EU law arising from Brexit, in line with approach taken in other financial services EU exit instruments.
  • Also revokes some retained EU law, UK domestic law, which would be inappropriate to keep post-EU exit, as deal with cross-border activity within EU and EU institutions.
  • Also makes minor clarifications, corrections to earlier financial services EU exit orders.
  • Amendments
  • Amendments made to secondary legislation includes, among others, Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order, SI 2013/419.
  • Money laundering, terrorist financing regulations (SI 2017/692), markets in financial instruments regulations (SI 2018/1403) and benchmarks regulations (SI 2019/657).
  • Financial services electronic money, payment services regulations (SI 2019/1212).
  • Effectiveness
  • Regulations 1-3, 5, 6, 11, 16 come into force on Jun. 30, 2020, regulations 7-10, 12-14, 17 come into force immediately before IP completion day, ie Dec. 30, 2020.
  • Regulations 4, 15 and Part 3 come into force on IP completion day, ie Dec. 31, 2020.

Regulators UK GVT
Entity Types B/D; Bank; HF; IA; Ins; Inv Co
Reference StIn 2020/628, 6/30/2020; StIn 2013/419; StIn 2017/692; StIn 2018/1403; StIn 2019/657; StIn 2019/1212; EUWA; PRSP Reg 2017/1129; Reg 2019/819; Reg 2019/820; Reg 2019/1156; Reg 2019/2088; Reg 2019/2175; Reg 2019/2176; Brexit; ESG
Functions AML; Compliance; Financial; Legal; Reporting; Risk; Treasury
Countries European Union; United Kingdom; Cross-Border
Products Banking; Fund Mgt; Hedge Funds; Insurance; Issuance/IPO; Mutual Funds; Payments; Securities
Regions EMEA
Rule Type Final
Rule Date 6/30/2020
Effective Date 12/30/2020
Rule Id 80961
Linked to
Reg. Last Update 6/30/2020
Report Section UK

Last substantive update on 07/02/2020