Statutory Instrument gives Gibraltar access to UK post Brexit
The Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2020 is a Statutory Instrument that has been welcomed by the financial services industry in Gibraltar.
The SI amends UK primary and secondary legislation related to financial services’ passporting rights between the UK and Gibraltar. It ensures that Gibraltar licensed financial services firms continue to have access to UK markets, once the UK leaves the EU, in a no deal scenario.
In the words of the SI, with regard to the “Exercise of deemed passport rights by Gibraltar-based firms,” the text says: “A Gibraltar-based firm, which is (a) and investment firm and is (b) authorised under the law of Gibraltar, is to be treated as having an entitlement, corresponding to the EEA right deriving from the markets in financial instruments directive that such a firm would have had before exit day, to establish a branch or provide services in the United Kingdom.”
Furthermore, Gibraltar based credit institutions authorised by the Gibraltar Financial Services commission, “are to be treated as having an entitlement, corresponding to the EEA right deriving from the capital requirements directive that such a firm would have had before exit day, to establish a branch or provide services in the United Kingdom.”
Similar rules apply to the following: other financial institutions, direct insurance firms, insurance intermediaries and those engaged in reinsurance and management companies.
It is hoped that a ‘no deal’ scenario will not come to pass, but this SI ensures that Gibraltar financial services firms can continue to operate in the UK irrespective of the Brexit outcome.