Commission adopts Communication taking stock of preparations for a no-deal Brexit

Posted in UK and EU legal framework Financial services

On 12 June 2019, the European Commission (Commission) adopted a communication on the state of play of preparations of contingency measures for a no-deal Brexit.

The Commission has tabled 19 legislative proposals, 18 of which have been adopted by the European Parliament and Council.  The Commission has also adopted 63 non-legislative acts and published 93 preparedness notices. In light of the extension of the Article 50 period, the Commission has screened these measures to ensure that they continue to meet their intended objectives. The Commission has concluded that there is no need to amend any substance of the measures as they remain fit for purpose. The communication also notes that the Commission does not plan any new measures ahead of exit day.

The communication sets outs out selected areas in which vigilance is needed in the coming months to assist in preparing for the risk of a no deal Brexit. The Commission encourages stakeholders to take advantage of the extra time until 31 October 2019 to ensure that they have taken all the necessary action to prepare for this possible eventuality.

As regards financial services:

  • on the run-up to the previous withdrawal date of 12 April 2019, firms had made significant progress with their contingency planning, including establishment in the EU27 Member States, and modification (‘repapering’) or termination of cross-border contracts;
  • insurance firms, payment services providers and other financial service operators which remain unprepared regarding certain aspects of their business (for example contract management and access to infrastructures) are strongly encouraged to finalise their preparatory measures by 31 October 2019;
  • the Commission is working with EU-level and national supervisors to ensure that firms’ contingency plans are fully implemented, and it expects that UK supervisors will not prevent firms from implementing such plans; and
  • the Commission is also working together with Member States to ensure a consistent approach to contingency preparations in the area of financial services at national level, to preserve financial stability.

This briefing also features as a post on our Financial services blog: Regulation Tomorrow.

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