The post below summarises the latest Brexit developments related to asset management.
EU Exit: PRA statement on ACPR response to EIOPA recommendations for insurance sector
The PRA has issued a statement regarding French regulator Autorité de contrôle prudentiel et de résolution’s (ACPR) response to the European Insurance and Occupational Pensions Authority’s (EIOPA) recommendations for the insurance sector in light of the UK withdrawing from the EU. The ACPR indicated in its response that it does not intend to comply with EIOPA’s Recommendation 6 relating to insurance policies originally sold in the UK by UK insurers to policyholders now resident/established in France. In order to make use of the French Brexit Ordinance regime, UK insurers must have appropriate passports to carry out business in France in place by exit day. The PRA and FCA encourage firms to seek legal advice and consider potential risks arising from the ACPR approach to affected policyholders as soon as possible, including consideration of any required passports to carry out business in France in place before exit day to enable the use of the French Brexit Ordinance.
EU Exit: Updated FCA statement on reporting of derivatives under the UK EMIR regime in a no-deal scenario
The FCA has updated its statement on the reporting of derivatives under the UK European Market Infrastructure Regulation (EMIR) regime in a no-deal scenario. The FCA states that in the event that the UK withdraws from the EU without an agreed deal on 31 January 2020, UK reporting counterparties and UK trade repositories (TRs) should use the UK EMIR validation rules when submitting derivative transactions entered into from 11.00pm on 31 January 2020 onwards.
Dissolution of Parliament: Bills making no further progress
As the 2017-19 Parliament has dissolved, the Financial Services Duty of Care Bill [HL] 2019-20, (a Private Members’ Bill to require the FCA to make rules for authorised persons to owe a duty of care to consumers in their regulated activities) will make no further progress.