UK Authorities Update on Transition to Post-Exit Rules and Standards
UK regulatory authorities (BoE, PRA, and FCA) have updated the information on Brexit, following ratification of the Withdrawal Agreement by UK and EU. Under the terms of the Withdrawal Agreement, on the exit day, UK entered into an Implementation Period until December 31, 2020. During this period, the EU law will continue to apply in UK in the same way as it applied prior to the exit of UK. Prior to UK and EU agreeing to the Withdrawal Agreement, HM Government and the UK regulatory authorities undertook a program of legislative activity to ensure that UK continues to have a functioning financial services regulatory regime post its exit from EU.
The EU (Withdrawal) Act 2018 (EUWA) functions to retain EU law and legislation implementing EU law and provides powers to amend it as appropriate for the UK legal environment. To this end, UK Parliament passed a number of Statutory Instruments amending the retained EU financial services legislation. The UK regulators also made EU Exit Instruments to amend their rules and relevant Binding Technical Standards, using powers delegated by the EUWA. BoE and PRA previously published policy materials including EU Exit Instruments, supervisory statements, and Statement of Policy. These generally had the effective date of the exit day or immediately before the exit day. Under the EU (Withdrawal Agreement) Act 2020, the commencement of these EU Exit instruments has been delayed until the end of the Implementation Period.
BoE and PRA also notified that they may need to amend or make additional EU Exit Instruments to reflect legislative changes during the further extension of the Article 50 period from October 31, 2019 to January 31, 2020 and during the Implementation Period between February 01, 2020 and December 31, 2020. Therefore, they have not made final versions of the draft instruments at this time.
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Keywords: Europe, EU, UK, Banking, Insurance, Securities, Brexit, Withdrawal Agreement, Transition Period, EU Withdrawal Act, Exit Instruments, EUWA 2020, FCA, PRA, BoE
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