The Importance of Financial Succession
BREXIT UPDATE: Passporting Rights into the EEA Will End 31st December for All UK Firms
What has been announced so far?
Following the recent news of UK banks closing off services in EEA, the FCA announced last week that passporting rights will end for all UK firms, effective 31st December 2020. For those passporting from EEA to UK, the FCA has granted a Temporary Permissions Regime for 3 years however no regime is in place or under discussion for passporting from UK to EEA. No UK outward equivalence is currently in place; these permissions are agreed by Central Government, however, the FCA advises to prepare for no permissions to be in place.
There should also be no general assumption that reverse solicitation from EEA to UK firms can continue. Local legal advice in member states is recommended. MiFID will continue to apply in UK law, with new laws expected next year
What does this mean to me?
Individuals who currently have an Independent Financial Adviser (IFA) in the UK and reside in the EEA must now look for an IFA that is regulated in the EEA to continue to receive advice. In most circumstances, this would also mean transferring to an alternative arrangement that is available to UK non-residents.
Post-Brexit, UK IFA firms who don’t hold the correct EEA regulations will suffer.
Fortunately, at SJB Global/BFMI we are fully Brexit-proof and have all the correct arrangements in place to continue to allow new business and servicing rights for existing clients to continue as normal, into 2021 and beyond.
If you think this news may impact you, get in touch with us today by filling in the form below to see how we can help you.
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