In its current form, the text of the declaration treats the UK like any other third country outside the EU or EEA. The UK is entitled to seek an equivalency assessment for limited access to EU financial services markets, which are available under the equivalency schemes provided by the various directives that record access or special treatment to third-country companies. The policy declaration provides for the granting of aduitable status to the United Kingdom before the end of the transition period until December 2020 and confirms that the European Commission will begin to assess the adequacy as soon as possible after the UK`s withdrawal In the event that the agreement and transition period does not come into force, the ACF has announced a temporary authorisation scheme (“TPR”) for companies and EEA funds that are , if they choose to participate, allow companies that continue to exercise their passport rights in the UK and funds that continue to enter the UK, for a transitional period of up to three years, until they are invited to apply for full authorisation. A similar regime will come into force on 1 January 2021 if the agreement and transition period were to be concluded, but the subsequent agreement between the UK and the EU does not provide for an agreement on financial services. This overview outlines what has been agreed in the financial regulation and explains how the UK government intends to implement it through eu law (withdrawal agreement). To be part of the transitional regime, financial institutions must inform the UK authorities of their intention to participate before the withdrawal date; or have applied in advance for the final approval process. To launch such an assessment as soon as possible after the UK`s withdrawal from the EU in order to complete these assessments by the end of June 2020. Theresa May`s government has proposed that the bill could be used to ensure that the government regularly provides Parliament with additional financial settlements, including additional fees to be paid in the future. Such control agreements are not included in the bill.
This does not necessarily mean that Parliament will not be aware of the payments. The Ministry of Finance currently provides Parliament with information on the contributions and revenues of the United Kingdom as a Member State in recent years, without the law requiring it. The European Commission has approved four emergency measures for the financial sector in the absence of an agreement: the EU passport system for financial services will no longer be valid in the UK. Continued activity in the United Kingdom would first be covered by the temporary authorisation scheme, even in the event of withdrawal without agreement. The UK government plans to grant a three-year temporary authorisation allowing EU financial institutions to continue their activities while adapting their group structure and obtaining permanent authorisations and recognition by UK regulators. The financial regulation covers the UK`s contribution to the EU`s international development programmes (European Development Fund, EU Trust Fund and Refugee Facility in Turkey). These areas are outside the EU budget and the UK is currently contributing through decision-making powers set out in the International Development Act 2002. This bill says that will always be the case. The withdrawal agreement sets out how the UK and the EU will pay off their unpaid financial obligations arising from the UK`s participation in the EU budget as a member state and the wider aspects of its EU membership. The agreement on these financial aspects is known in the financial settlement (regulation). The political statement is a brief document and, as far as financial services is concerned, it contains few details.
It is positive to note that, with regard to services (including financial services), the aim is to achieve a level of trade liberalization of services “well beyond” WTO obligations and to comply with the recent free trade agreement