ESMA Reminds Firms to Submit Authorization Applications Before Brexit
ESMA issued a Public Statement to raise the awareness of all market participants on the importance to prepare for the possibility of no agreement in the context of the UK withdrawing from EU (Brexit). As there is no assurance that a transition period will be agreed upon, entities need to consider the scenario where a hard Brexit would take place on March 30, 2019. ESMA emphasizes the importance of the timeline to submit requests for authorization to the national competent authorities and to ESMA for the regulated entities wishing to relocate in the context of Brexit.
On March 30, 2019, firms must have a fully authorized legal entity located in the EU27 to continue providing services in the EU27. ESMA has seen an increase in the number of authorization requests submitted to EU27 authorities. Against this background, ESMA urges entities wishing to relocate to the EU27 to submit their application for authorization as soon as possible to allow it to be processed before March 29, 2019. Some national competent authorities have already been clear to entities that, unless an application is received in the month of June/July, there is no guarantee that authorization will be achievable before March 29, 2019. ESMA reminds entities that the time required to analyze an authorization request depends primarily on the quality of the application file and encourages entities to be complete and accurate in their filing for authorization. ESMA invites entities to contact the relevant national competent authorities, or ESMA in the case of CRAs/trade repositories, as soon as possible in case they have not yet done so.
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Keywords: Europe, EU, Banking, Securities, Insurance, Brexit, CRAs, Authorization Applications, ESMA
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