RO1 EEA Rules Flashcards

1
Q

When did the UK leave the EU?

A

Jan 2020, with a transition period up until Dec 2020.

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2
Q

What is the loss of pasporting rights?

A

The loss of the UK/EEA financial services firms’ ability to sell products and services to clients in the EEA/UK.

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3
Q

Which companies find the loss of passporting rights the hardest?

A

Insurance companies.

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4
Q

How are passporting rights being managed?

A

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’.

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5
Q

Where have the difficulties come from working with the EEA and why?

A

UK companies servicing their EEA customers.
The different European countries have different rules for dealing with UK insurers.

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6
Q

How are the UK and EU combating difficulties with Brexit?

A

Established a Memorandum of Understanding to find some form of equivalent regime, which both sides have agreed but is not yet EU law.

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7
Q

As it stands, is the uk more or less aligned with the EU?

A

More

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8
Q

How much FCA policy comes from the EU?

A

70% and many are now UK law.

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9
Q

What is the term onshoring?

A

The process of converting and amending EU laws and regulations to be fit for purpose in the UK.

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10
Q

What is Temporary Transitional Powers?

A

The temporary provisions the UK treasury has given UK regulators to help implement financial services legislation.

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11
Q

What may result due to onshoring?

A

Many EU regulatory initiatives will remain in the UK.

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12
Q

Why should you keep an eye on the EU area of study?

A

Negotiations are still ongoing on the longer term impact of BREXIT.

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13
Q

Under the EU directive, what was possible.

A

A regulated firm that had its headoffice EEA state could carry out regulated services in another EEA state.

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14
Q

What is still possible regarding EU law?

A

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.

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15
Q

What is the EEA?

A

The European Economic Area

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16
Q

When was the EEA created, and what for?

A

1/1/1994

Allow Norway, Iceland, and Liechtenstein to join the single market without becoming EU states.

This means they have to implement some EU laws within their domestic markets.

17
Q

How many EEA states are there?

A

30

18
Q

What state is not a full member of the EEA or EU?

A

Switzerland.

19
Q

What states are not a member of the EEA or EU?

A

The chanel Islands and Isle of man.

20
Q

What is different about Gibraltar?

A

It has a separate status to the EU and EEA, and so the insurance distribution directive (IDD) and MIFID rules apply in full.

21
Q

What is MIFID?

A

Markets in Fiancial Instruments Directive 2

22
Q

What are M2G 1 and 2

A

M2G 1: Onshoring for trading venues and data reporting services

M2G 2: Onshoring of senior management arrangements, and systems and control obligations.

23
Q

What must key features, key information, and key investor information now include?

A

Performance changes.

The method of calculating past performance scenarios.

This is set by the FCA so not to give overly optimistic impressions of future performance.

24
Q

What are the 4 changes in FSCS since BREXIT?

A

UK branches of EEA Authorised Deposit Taking Firms now UK authorised and protected by FSCS.

EEA branch deposits of a UK firm not covered by the FSCS. Should be covered by a deposit guarantee scheme of EEA state and will depend on what is in place.

Passporting rights ceased- EEA backs need to apply for authorisation. Can apply for the Temporary Permissions Regime whilst waiting.

FSCS protection depends on where authorised and where they hold deposits.

25
Q

What must a fund set up outside the UK do to be promoted in the UK to retail investors?

A

Be recognised by the FCA a recognised investment scheme or overseas scheme, i.e., Temporary Marketing Permissions Regime.

26
Q

What does the TMPR allow?

A

Funds based in the EEA that benefited from passporting rights to continue to be marketed in the UK.

This is for 3 years from BREXIT and the treasury can extend up to 12 months at a time.

27
Q

Who supervises credit rating agency regulation due to BREXIT?

A

The FCA since 31 Dec 2021

ESMA supervises EU agencies.

28
Q

What do uk nationals living in the EEA prior to 1/1/21 have to do tax wise.

A

Continue as normal.

29
Q

What did citizens of Switzerland and the EU living in the UK prior to 1st Jan 2021 have to do to remain?

A

Apply to the EU Settlement Scheme by 30th June 2021.

30
Q

What does anyone moving from the UK to the EU Post BREXIT have to do regarding tax?

A

Continue with social security as they did with EU membership.

If temporary (2 years), they can apply to make contributions to the HMRC UK.

If it is permanent, contributions go to the country they work in. This is the same for an employee coming to the UK.

UK state pension will continue to be paid, and the annual increases will continue as they did when the UK was a member state.

31
Q

If goods are imported from outside the EU do they pay VAT?

A

Yes

32
Q

How is VAT handled for EU and non EU businesses trading in Great Britain?

A

Treated the same for EU countries as countries outside the EU.

The rate is normally the same as if the goods had been supplied in the UK.

33
Q

When must overseas traders register for UK VAT in order to charge VAT at the point of sale?

A

When suppling goods up to the value of £135 (€150) to non-buisness customers.

34
Q

What must businesses that buy certain services from suppliers in other countries do?

A

Account for VAT by means of a reverse charge procedure.

35
Q

What special VAT rules apply for the movement of goods between GB and NI and between NI and the EU?

A

Exports of goods from Great Britain are zero-rated.

For Northern Island, zero-rating applies to exports of goods to countries outside the EU.

36
Q

Where else may special VAT rules be found?

A

For businesses that supply services outside the UK.