European achievements and passporting arrangements during the transition period in 2020
The United Kingdom became a third country since February 1, 2020. During the transition period, the UK continues to apply Union law and to benefit from the EU’s Single Market passporting arrangements until 31 December 2020.
Much uncertainty remains about future relations between the European Union and the United Kingdom. At the end of the transition period, European financial institutions will no longer be able to provide services to the United Kingdom via the European passport system. Likewise, British financial institutions will no longer be able to provide financial services the European Union market unless they have obtained the required authorisations within the EU.
Financial institutions should adapt to the post-Brexit regulatory reality, in order to avoid business disruptions or the implications for risk management (risk liquidity, access to capital markets and market infrastructures, continuity of derivative contracts, etc.). Institutions should inform their customers about their contingency planning and post-Brexit service offerings.
The Bank had on several occasions communicated its expectations in terms of Brexit preparations to the financial sector.