ESMA Issues Statement on Preparations for End of Brexit Transition
ESMA urges financial market participants to finalize preparations and implement suitable contingency plans in advance of the end of UK transition period on December 31, 2020. In addition, ESMA, EU national securities regulators, and FCA confirmed that Memoranda of Understanding on cooperation and information exchange, agreed in 2019, remain valid and will come into effect at the end of the transition period.
Once the transition period for UK ends on January 01, 2021, financial market participants whose activity might be impacted should have fully implemented their preparatory measures to mitigate any risks stemming from the end of the transition period. All entities should have provided appropriate information to their clients on any resulting consequences. The previously published statements by ESMA related to Brexit remain relevant and should continue to be followed. These statements include the general opinion of ESMA to support supervisory convergence in the context of Brexit, which was issued in May 2017, and the sector-specific opinions, which were issued in July 2017. ESMA will continue to review its Brexit-related statements in relation to operational issues and will issue further communication in due course.
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Keywords: Europe, EU, UK, Banking, Securities, Brexit, Transition Period, MoU, Contingency Plans, FCA, ESMA
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