ESMA Tells Market Participants to Continue Preparations For The End of The UK Transition Period
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, urges financial market participants to finalise preparations and implement suitable contingency plans in advance of the end of the United Kingdom’s (UK) transition period on 31 December 2020. ESMA also confirms that previously agreed Memoranda of Understandings (MoUs) on cooperation and information exchange concluded with the UK’s Financial Conduct Authority (FCA) remain valid and will come into effect at the end of the transition period.
On 1 January 2021, once the UK’s transition period ends, 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 also have provided appropriate information to their clients on any resulting consequences.
ESMA’s previously published Brexit statements, in particular ESMA’s general opinion to support supervisory convergence in the context of the UK withdrawing from the EU issued on 31 May 2017 and sector-specific opinions issued on 13 July 2017, remain relevant and should continue to be followed. ESMA will continue to review its Brexit-related statements, in particular in relation to operational issues, and will further communicate in due course.
On 1 February 2019, ESMA and EU national securities regulators announced the agreement of MoUs with the UK’s FCA to cover cooperation and exchange of information in the event the UK left the EU without a withdrawal agreement. At midnight (CET) on 31 January 2020, as the Withdrawal Agreement took effect and the UK entered into a transition period, whereby EU law continues to apply in and to the UK, these MoUs were not required to take effect.
ESMA, EU national securities regulators, and the FCA confirm that these MoUs, agreed in 2019, remain relevant and appropriate to ensure continued good cooperation and exchange of information and will come into effect at the end of the transition period, which is set to expire on 31 December 2020.
Latest News from
COVID-19: Member states need to harmonise health assessments and measures18/09/2020 16:33:00
Common definitions, health criteria and methodologies are key to effectively fighting the ongoing pandemic and its economic consequences in the EU, MEPs say.
Poland: Council has to “finally act” to protect minorities and the rule of law18/09/2020 15:25:00
Disrespect for judicial independence and the rights of LGBTI persons point to “overwhelming evidence” of breaches of EU values, Parliament says.
COVID-19 vaccines: Public hearing in European Parliament18/09/2020 14:33:00
Addressing the challenges linked to securing access to safe COVID-19 vaccines will be the main topic of an online hearing on 22 September from 09.00-12.00 in the European Parliament.
Parliament requests more support for regions to make energy transition a success18/09/2020 13:25:00
MEPs are ready to start negotiations with the Council on setting up the Just Transition Fund to mitigate the social impact of greening the economy.
European Green Deal Call: €1 billion investment to boost the green and digital transition18/09/2020 12:38:00
The European Commission yesterday decided to launch a €1 billion call for research and innovation projects that respond to the climate crisis and help protect Europe's unique ecosystems and biodiversity.
EU arms exports: need for more control and transparency18/09/2020 11:33:00
EU citizens have to be better informed about their governments’ strategic choices on an issue that directly affects their security, warn MEPs.
COVID-19: EU must step up efforts to tackle medicine shortages18/09/2020 10:38:00
Parliament calls for the EU to be more self-sufficient when it comes to medicines and medical equipment so that affordable treatments are available at any time.
Parliament says shipping industry must contribute to climate neutrality18/09/2020 09:25:00
To decarbonise maritime transport, Parliament voted to include CO2 emissions from the sector in the EU Emissions Trading System.
Vote on Own Resources: MEPs clear way for COVID-19 recovery plan17/09/2020 16:33:00
MEPs accelerate the procedure that will enable the EU to borrow €750 billion for the “Next Generation EU” recovery plan.