Brexit: Temporary Permissions Regime (TPR)
Posted on 4 Dec 2020
Article originally published 10/09/2020. Updated to contain new developments on 04/12/2020
One month before the effective date of Brexit, financial companies are still in the dark and awaiting a possible equivalence between the UK and the European Commission.
However, some of the member states have been specific about the next steps for the UK entities. Temporary regimes allow the continuation of the MiFID services for the next 6-15 months if the service is aimed at eligible counterparties and professional clients without the need to apply for a license in the country concerned.
The following is a summary concerning the current position in some of the key EU27 jurisdictions:
|Country||TPR Rules||New Clients?||TPR Duration (Post-Hard Brexit)||How to apply||Deadline to notify|
|Austria||No TPR available|
|Belgium||No TPR available|
|Denmark||Passporting arrangement enabling UK firms to provide MiFID investment services to new and existing per se professional clients and eligible counterparties post-Brexit.||Yes||The measure will run indefinitely and until the UK is granted equivalence by the European Commission.||The Danish regulator is now accepting applications from UK firms to rely on the cross-border licence (temporary XB licence).
Although the deadline of 15 October has passed for the Danish cross-border licence, it does not mean that the application won’t be processed but it may not be granted before 1 January 2021. The application is very straightforward to complete and is available here.
15th October 2019
|Finland||No TPR available|
|France||No TPR available|
|Germany||No TPR available|
|Greece||No TPR available|
|Iceland||No TPR available|
|Ireland||Non-Irish firms to provide investment services to new and existing per se professional clients and eligible counterparties post-Brexit without the need to obtain a licence from the CBI. To rely on the exemption, firms need to provide investment services to Irish clients on a cross border basis - not out of a branch in Ireland or having its head office situated in Ireland|
|Italy||No TPR available|
|Liechtenstein||TPR applies to all client types, new and existing clients and businesses.||Yes||Until December 31, 2022 or until a corresponding equivalency decision comes into force at EEA level.||No notification required.||N/A|
|Luxembourg||Temporary relief enabling UK firms to provide services to existing clients (no new clients). New contracts can be entered into by the existing clients provided these contracts are “closely connected” to existing contractual arrangements. Covers MiFID, CRD, AIFMD and UCITS firms. Applies to all client types.||No||12 months||Notify the CSSF of your intention to continue to provide services to a Luxembourg fund by 15th September 2019. This should be followed by a corresponding application for approval to the CSSF by 31st October 2019.||15 September 2019|
|Netherlands||No TPR available|
UK firms that were authorised to perform investment activities or provide investment services with ancillary services in Norway based on home state authorisation and the right to provide services under the EEA Agreement, may after 31 December 2020, without being authorised by Finanstilsynet, continue to perform such investment activities from its home state to professional clients and eligible counterparties in Norway until 1st January 2023.
|Yes||1st January 2023||No notification required.||N/A|
No TPR available
|Portugal||No TPR available|
|Spain||Existing contracts will remain valid and enforceable, but cannot be amended or renewed, unless the firm applies for a new authorisation.
Spanish branches of UK firms - need to apply for a new authorisation in Spain to continue servicing clients in Spain and to benefit from the transitional period (until the new authorisation is granted).
Cross-border services (i.e. no permanent establishment) - need to apply for a new branch or subsidiary authorisation to continue servicing clients in Spain and to benefit from the transitional period (until the new authorisation is granted).
|No||9 Months||No notification required.||N/A|
|Sweden||UK MiFID II investment firms that wishes to rely on the Swedish temporary regime, i.e. to continue to provide investment services or activities in Sweden are not obliged to actively take any steps to rely on such exemption, i.e., no application/registration will be needed.||Existing client only with contractual relationship on the 29 of March 2019||Unclimited||No notification required.||N/A|
The TPR would last a maximum of three years and its effect would be to temporarily:
|Yes||3 years maximum||Notifications should be submitted via FCA Connect.||30 December 2020|
TPR and Laven
If this is of interest or if you have any concern about continuing your activities in EU countries, please feel free to reach out to us and we will be glad to revert to you with our best solution.