Financial Services Contracts (Transitional and Saving Provision) (EU Exit) Regulations 2019

SI 2019/Draft: This draft enactment is laid in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This draft enactment proposes to amend UK subordinate legislation in relation to the European Economic Area’s (EEA) ‘financial services passport' which allows firms in EEA states to offer services in any other EEA state on the basis of their home state authorisation and to non-UK central counterparties and trade repositories which provide certain services in the UK under the European Market Infrastructure Regulation in order to address deficiencies in retained EU law. Without this instrument, where these firms do not enter the UK’s temporary regimes, they may not be able to meet existing contractual obligations or provide services. This could be detrimental to UK-based customers and could lead to disruption of services.

Purpose

These draft Regulations are laid in exercise of the powers in section 8(1) of, paragraph 1 of Schedule 4 to, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018 (EU(W)A 2018).

These draft Regulations are laid to:

• amend subordinate legislation to provide further transitional provision in respect of the performance of contracts entered into before exit day

• amend the EEA Passport Rights (Amendment, etc, and Transitional Provisions) (EU Exit) Regulations 2018, SI 2018/1149, to provide a regime to continue to perform a regulated activity in certain circumstances, miscellaneous transitional provision in respect of other areas of financial services legislation, and a power for the Treasury to amend certain time limits set

• amend the Central Counterparties (Amendment, etc, and Transitional Provision) (EU Exit) Regulations 2018,