After the end of the transitional period on 01.01.2021, the provision of financial services by the United Kingdom (UK) will be subject to laws of the European Union (EU) for third countries. Regulations of the EU for “passporting”- rights within the EU will no longer apply to providers of financial services seated in the UK. A Free Trade Agreement (FTA) would not remove most of the potential disruption in the financial service sector; an FTA does not deal with “passporting”- rights. Financial services between the UK and the EU will be determined mainly based on equivalence decisions of the European Commission. The European Commission will determine, if a third country’s regulatory, supervisory and enforcement laws are equivalent to the relevant legal framework within the EU.
4. December 2020