Passporting Update
What has happened?
Greater certainty and stability offered to financial markets by the Brexit transition agreement between the UK and European Union on Monday 19 March has been welcomed by the industry.
The agreement, which is conditional based on each side reaching a deal on a final withdrawal treaty, will enable a 21-month transition period after the UK leaves the EU on 29 March 2019, whereby a continuation of current laws and regulations would continue to be in place while the UK unbinds itself from the bloc.
As part of the deal, the UK will be able to reach trade agreements with other countries during the period while still being party to existing EU deals with other countries. In addition, the rights of EU citizens in the UK will be guaranteed, and vice versa.
Importantly for financial services, it will also ensure the ongoing recognition of passporting rights, data sharing and contract continuity.