European Union: Brexit Asset Management Update - October 22, 2019

Last Updated: 5 November 2019
Article by Nigel Farr, Tim West, Nish Dissanayake and Stephen Newby
Most Read Contributor in UK, October 2019

The post below summarises the latest Brexit developments related to asset management.

ISDA publishes no-deal Brexit FAQs

The International Swaps and Derivatives Association (ISDA) has published a set of no-deal Brexit FAQs which provide a high-level summary of the key impacts of a no-deal Brexit on the OTC derivatives market and ISDA documentation.

FCA updates Brexit guidance on data sharing

The FCA has updated its webpage on preparing firms for Brexit to include further information on data sharing. The FCA advises that the UK Government has taken action to ensure that if the UK leaves the EU after 31 October with no deal, UK firms will continue to be able to legally send personal data from the UK to the EEA and 13 countries deemed adequate by the EU. The FCA notes that the position for transfers of personal data from the EEA to the UK has not been made clear.

Queen's Speech 2019: Financial Services Bill

The UK Government has published the Queen's Speech 2019, which sets out the legislative agenda for the forthcoming Parliamentary session. The Financial Services Bill, which aims to ensure the UK maintains regulatory standards and international access post-Brexit, will form part of the legislative agenda. The Bill aims to:

  • protect the UK's status as an asset management centre by simplifying the process allowing overseas investment funds to be sold in the UK;
  • strengthen the regulation of global banks via implementation of the Basel Standards; and
  • ensure long-term market access to the UK for financial services firms in Gibraltar.

A practical summary and background briefing notes of the Queen's Speech have also been published.

FCA update for firms on no-deal expectations

The FCA has issued an update setting out its latest expectations for firms in the event the UK leaves the EU on 31 October 2019 without a deal:

  • wholesale banks, wholesale markets and asset managers are alerted to relevant memoranda of understanding and the FCA's October 2019 Primary Markets Bulletin;
  • the FCA intends to consult soon on its proposed approach to branches and subsidiaries of international firms;
  • the FCA intends to publish further details of the process by which new EEA sub-funds which are authorised after exit, but form part of an umbrella scheme that notified for the temporary permissions regime (TPR) prior to exit, may be added into the regime; and
  • regarding the reporting of derivatives, the FCA expects all UK reporting counterparties to have reported the details of all derivative transactions concluded, terminated and/or modified on 1, 2 and 3 November 2019 to an FCA registered trade repository (TR) by no later than 4 November 2019.

The FCA will take a proportionate and pragmatic approach to supervising reporting around exit day.

FCA publishes Market Watch on Brexit

The FCA has published Market Watch 61 on the topic of a no-deal Brexit. The short note covers: Brexit planning; Brexit and MiFID transaction reporting; the operation of the MiFID transparency regime post-exit; and industry testing of FCA FITRS.

FCA FITRS instructions

The FCA has published instructions on the FCA Financial Instruments Transparency System (FITRS), which has been built to replace the European Securities and Markets Authority (ESMA) FITRS in the UK as part of the FCA's planning for Brexit. The document is addressed to market participants which need to make use of the UK transparency calculation results for the purpose of complying with the Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (UK MiFI Regs) and the associated Binding Technical Standards. The FCA FITRS transparency results files are calculated from transparency data collected from UK trading venues and UK approved publication arrangements (APAs). The results files also include pre-Brexit results sourced from ESMA FITRS, to the extent these results have not been superseded within FCA FITRS.

EU Exit: Financial Services (Implementation of Legislation) Bill falls

The UK Parliament has confirmed that the Financial Services (Implementation of Legislation) Bill 2017 – 19 has failed to complete its passage through Parliament before the end of the session. This follows the prorogation of Parliament. The Bill, which would have provided a mechanism, in a no-deal scenario, for HM Treasury to implement EU financial services legislation that is currently in the pipeline for a period of two years after the UK leaves the EU, will instead make no further progress. The Bill had completed its passage through the House of Lords but only proceeded as far as completing the committee stage in the House of Commons, and was among the Bills deemed to have fallen following the government's attempt to prorogue Parliament in September 2019, which was later held by the Supreme Court to be unlawful.

OFSI publish Russia post EU-Exit financial sanctions guidance

OFSI has published specific guidance in respect of the financial and investment restrictions in the Russia sanctions regime should the UK leave the EU without a deal. This guidance does not currently apply and would only come into effect if the UK leaves the EU without a deal and when the Russia (Sanctions) (EU Exit) Regulations 2019 come into force.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
Herbert Smith Freehills
Herbert Smith Freehills
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Herbert Smith Freehills
Herbert Smith Freehills
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions