The impact of Brexit on the MiFID II regime

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • The impact of Brexit on the MiFID II regime
  • UK legislation
  • HM Treasury approach to financial services legislation
  • Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018
  • EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit)
  • The Investment Exchanges, Clearing Houses and Central Securities Depositories (Amendment) (EU Exit) Regulations 2019
  • Binding technical standards and rule changes
  • Temporary Permissions Regime
  • Firms with MiFID II tied agents
  • Client assets
  • More...

The impact of Brexit on the MiFID II regime

This Practice Note provides information relating to the impact of Brexit on the recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II) and the Markets in Financial Instruments Regulation (Regulation (EU) 600/2014) (MiFIR) (together, the MiFID II regime). It summarises the approach being taken in relation to the MiFID II regime generally, and it also sets out key issues for specific aspects of the regime, including passporting, transparency, share and derivatives trading obligations, transaction reporting and reference data, data reporting service providers and market operators.

The European Union (Withdrawal) Act 2018 (EU(W)A 2018), as amended by the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020), makes provision for the ratification and implementation in domestic law of the Withdrawal Agreement between the UK and the EU. The Withdrawal Agreement sets out the arrangements for the UK’s withdrawal from the EU. It includes a transition period (or, to use the UK government’s phraseology, an ‘implementation period’) beginning on 31 January 2020 and ending on 31 December 2020 (IP completion day). During the implementation period, the UK was treated, for most purposes, as if it were still an EU Member State with access to EU markets and, importantly, maintaining passporting and Treaty rights.

Now that the implementation period has ended, the UK is outside the EU’s framework for financial services.

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