After the end of the Brexit transition period, some EEA member states have been specific about the potential next steps for UK entities. Temporary regimes (TPRs) in place in some of these states allow the continuation of MiFID services for the next 6-15 months, in most cases if the service is aimed at eligible counterparties and professional clients, without the need to apply for authorisation in the country concerned. Below is a summary of the current position in some selected key EEA jurisdictions that offer TPRs.
Cyprus
Cyprus has a TPR in place for UK firms for Cyprus professional and ECP clients. However, CySEC required notification by 31 December 2020 and it is not known whether a late notification would now be acceptable – this would need to be checked with CySEC.
View CySEC’s information here.
Denmark
There is a “passporting” arrangement enabling UK firms to provide MiFID investment services to new and existing per se professional clients and eligible counterparties post-Brexit.
View the Danish FSA’s information here.
Ireland
Non-Irish firms can provide investment services to new and existing per se professional clients and eligible counterparties post-Brexit without the need to obtain a licence from the Central Bank of Ireland. To rely on the exemption, firms need to provide investment services to Irish clients on a cross-border basis, not out of a branch in Ireland or a head office situated in Ireland.
View the Central Bank of Ireland’s information here.
Luxembourg
UK firms can temporarily provide services to existing clients, but not to new clients. New contracts can be entered into by the existing clients provided these contracts are “closely connected” to existing contractual arrangements. This arrangement covers MiFID, CRD, AIFMD and UCITS firms and it applies to all client types.
View the Luxembourg CSSF’s information here.
Norway
UK firms that were authorised to perform investment activities or provide investment services with ancillary services in Norway based on home state authorisation may, after 31 December 2020, continue to perform those investment activities from their home state to professional clients and eligible counterparties in Norway. This entitlement will continue until 1st January 2023 and if the conditions are met, firms can do this without being authorised by Finanstilsynet.
View Norway’s Finanstilsynet’s information here.
Spain
Existing contracts with Spanish clients will remain valid and enforceable, but cannot be amended or renewed unless the firm applies for a new authorisation.
Spanish branches of UK firms need to apply for a new authorisation in Spain to continue servicing clients in Spain and to benefit from the transitional period until the new authorisation is granted.
Firms providing cross-border services need to apply for a new branch or subsidiary authorisation to continue servicing clients in Spain and to benefit from the transitional period until the new authorisation is granted.
Sweden
UK MiFID II investment firms that wish to rely on the temporary regime to continue to provide investment services or activities in Sweden need not actively take steps to rely on the exemption, i.e. no application/registration is needed. This relates only to existing clients that had a contractual relationship on 29th March 2019.
View Sweden’s Finansinspektionen’s information here.
For more information on how we can help you with your EEA TPR arrangements, or with any other aspect of FCA compliance, our expert team is here to help. Contact us today on 0207 436 0630 or email info@thistleinitiatives.co.uk.
This update is based on information provided by certain EEA regulators at the time of publication and should not be relied on as individual professional advice.