RO1 EEA Rules Flashcards
When did the UK leave the EU?
Jan 2020, with a transition period up until Dec 2020.
What is the loss of pasporting rights?
The loss of the UK/EEA financial services firms’ ability to sell products and services to clients in the EEA/UK.
Which companies find the loss of passporting rights the hardest?
Insurance companies.
How are passporting rights being managed?
By an agreement to carry on servicing each others customers.
Some UK insurers operate out of their EEA subsidiaries.
Allowing EEA firms to operate out of UK branches and service their UK customers for a 15-year ‘run off period’.
Where have the difficulties come from working with the EEA and why?
UK companies servicing their EEA customers.
The different European countries have different rules for dealing with UK insurers.
How are the UK and EU combating difficulties with Brexit?
Established a Memorandum of Understanding to find some form of equivalent regime, which both sides have agreed but is not yet EU law.
As it stands, is the uk more or less aligned with the EU?
More
How much FCA policy comes from the EU?
70% and many are now UK law.
What is the term onshoring?
The process of converting and amending EU laws and regulations to be fit for purpose in the UK.
What is Temporary Transitional Powers?
The temporary provisions the UK treasury has given UK regulators to help implement financial services legislation.
What may result due to onshoring?
Many EU regulatory initiatives will remain in the UK.
Why should you keep an eye on the EU area of study?
Negotiations are still ongoing on the longer term impact of BREXIT.
Under the EU directive, what was possible.
A regulated firm that had its headoffice EEA state could carry out regulated services in another EEA state.
What is still possible regarding EU law?
UK firms could passport to Gibraltar. Valid until December 2022. May have been extended.
EEA firms passporting into the UK will receive ‘deemed’ part 4A permission. Can continue to trade in the UK whilst they wait for authorisation with part 4 permission.
What is the EEA?
The European Economic Area