PIMFA - Building personal financial futures
Brexit Bulletin - 18 March 2019
Dear <<First Name>>, Welcome to the first PIMFA Brexit Bulletin, a new fortnightly publication that aims to keep members up to date with the latest news and movements ahead of, and post, the UK's prospective exit from the European Union. As Deputy CEO, I want to ensure that our members continue to be fully informed on Brexit developments and are kept up-to-date with relevant news from both the EU and UK, including needed regulatory information when this becomes available. I will be sending regular updates providing you with our views and insight on the likely changes ahead and on the challenges presented by the Brexit and post-Brexit world. As your trade association we have been fully engaged in the Brexit process so far and have represented the views of our financial services sector both independently and as part of the many groups dealing with Brexit to which we belong. Since our successful Brexit Conference in November we have focused increasingly on the granular nitty gritty of what firms will have to do in the different EU jurisdictions to keep servicing their clients, culminating in commissioning detailed legal advice which any member willing to pay the fee involved can access. We are also in discussion with the FCA about a range of unresolved issues that may affect our firms, and have begun to examine the conditions set by an increasing number of EU member state national regulators on accessing retail investors, especially UK expatriates, in their jurisdictions. We will be reporting on our findings as time goes by. The UK Parliamentary situation will determine the immediate and perhaps longer term
future of Brexit developments. At the time of writing the Speaker has just refused to allow a third meaningful vote on the amendment to propose the Withdrawal Agreement and we wait to see what will happen next. But a vote this week that passed the Withdrawal Agreement would mean it would become law and the UK will leave the EU on 29 March this year but with a 20 month transition before anything practical changes for PIMFA businesses. If the Government were to lose then it is likely that a lengthy extension to Article 50 will be negotiated and agreed, lasting possibly until the end of December 2020, so that the UK can have time to reconsider and perhaps build a national consensus on its Brexit options. In extremis this could lead to a general election or second referendum, the outcomes of which would be anybody’s guess. Again, PIMFA firms would not have to change their practices. But either case would require the UK to field a slate of Members of the European Parliament for next month’s elections and this could be useful to us as we lobby for members’ interests going forward. Whatever arises the PIMFA team will be working hard to ensure that our community of firms is represented in the ensuing discussions and decisions, and that members are kept informed of outcomes and their implications. Our aim will be to assist firms to make appropriate alterations and develop suitable strategies post-Brexit to help clients plan for their financial futures, while minimising disruption and maximising continuity in the essential services the firms provide. We will continue to bring you comment on the latest Brexit news and affairs through press releases and comments, our fortnightly Update publications, snippets, blog posts, e- newsletters and social media posts. Please follow us if you don’t already do so, and please contact me if you have any concerns or queries.
John Barrass Deputy CEO, PIMFA +44 (0) 20 7448 7100
What is PIMFA Working on ahead of Brexit
PIMFA Brexit/EU Webpage On the PIMFA website, we have an entire section exploring the consequences of Brexit in more detail. PIMFA members must log in to access useful guides and documents written exclusively for them. • •
Keep track of all the latest Brexit negotiation developments here Find out more about Post-Brexit Financial Services Regulations here
Meetings, Trips & Notes • PIMFA Responds to Latest Parliament Vote To Extend Article 50 • PIMFA Responds to Parliament Votes on Brexit Next Steps • PIMFA Comments on Government’s heavy defeat on Brexit Withdrawal Motion • Brexit and the future economy debated at PIMFA Annual Summit • BREXIT BLOG: Breaking Up is hard to do
PIMFA Brexit Guide As part of our work to assist member firms in meeting the challenges posed by Brexit, PIMFA have been working in collaboration with BRP on a guide to the implementation of the Markets in Financial Instruments Directive (MiFID) and Regulation (MiFIR) in all 27 other EU member states. We hope that it will also help firms during the transition. Read the Guide in full here.
Latest Brexit News
Third Meaningful Vote Blocked by Bercow There has just been a shock announcement from speaker John Bercow, telling Parliament that he will not permit the Government to bring its Deal back for a third meaningful vote unless the Deal is changed in a substantial way. This means that it is very unlikely that the Government will be able to bring its Deal back before the 20th March as it will not have changed from the Deal as last presented. According to the motion on an Article 50 extension passed by the House last week, the fact that the Deal will not be able to be passed by the 20th March means that the Government will have to seek a long Article 50 extension from the EU and that the UK will have to put candidates forward for European Elections. Going forward, the Government could look at potential immediate workarounds, such as: •
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Table a paving motion stating “notwithstanding the practice of the House” and introduce the deal again – this would override the convention the speaker alludes to. But the Government would need a majority for MV3 to use to pass such a paving motion and it is not clear that such a majority exists. Seek substantive change from the EU and further agreed documents with them: but how to do this at all, and in time?. Introduce the Withdrawal Agreement Bill and use the second reading as a symbolic Meaningful Vote with a clause that overrides the EU Withdrawal Act;; but this would risk voting down the Bill in much the same way as MV3 risks being voted down End the current Parliamentary session and restart a new one, but this would entail the loss of all legislation not carried over and is something of a nuclear option.
For now, there is no clear road or answer, and we must await the Government’s response to Speaker Bercow’s ruling. The European Council Summit is 21/22 March in which the EU27 leaders will meet to discuss the latest developments and their response – including a possible extension to Article 50. Contact us for more information
What PIMFA Members Need To Know
ICO Brexit Checklist
DCMS GDPR Brexit Guides
The Information Commissioner's Office (ICO) have created a six step checklist to
The DCMS have provided a "Personal
help firms prepare for data protection compliance if the UK leaves the EU without a deal. Read more
Data Transfers in a ‘No Deal’ EU exit Scenario" presentation and a document to help firms ensure they continue to comply with data protection laws if the UK leaves the EU without a deal. Read more
General Data Protection Regulation (GDPR) PIMFA member firms will be required to continue to comply with data protection law, which may complicate their ability to secure necessary information from EU- based clients. More information is available to read here. Read more
Brexit Working Group An opportunity for our member firms to discuss relevant topics within our industry and examine issues surrounding Brexit. Member input and contribution at these committees and working parties are invaluable. Find out more
Brexit: In the News
Brexit delay vote gives whip hand to EU leaders The U.K. parliament voted Thursday to extend the U.K.'s March 29 deadline for leaving the EU, but it is up to the EU27 leaders to grant an extension and they can only do so by unanimous vote.
Government likely to delay third meaningful vote John Bercow warns he will block third meaningful vote unless substantial changes are made
UK must have a credible reason to delay Brexit European council president sets out red line for extension to Britain staying in the EU
Labour MPs may yet hold the key to Brexit A plan to trade opposition votes for a second referendum could be the device that helps May’s deal over the line
No Deal, Delayed Brexit, Second Referendum: What Do All These Mean For British Business? How is the City - London's financial community - and British business weighing up these outcomes?
Financial firms move $1.2trn from UK to EU in Brexit fallout Over 275 financial firms are moving a combined $1.2trn (£925bn) in assets and funds and thousands of staff from Britain to the European Union amid uncertainty over a "no-deal" Brexit, a report shows.
FCA publishes proposals in the event of a no-deal Brexit The Financial Conduct Authority (FCA) has published 'near-final' rules and guidance that will apply in the event the UK leaves the EU without an implementation period. The policy statement and information is available to read on the FCA website. Additional information is available to read here.
Latest Brexit Industry Events
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