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Thought Leadership

Brexit: Temporary Permission Regimes (TPR)

Posted on 10 Sep 2020

Brexit September

This week, Boris Johnson has threatened to "tear up" parts of the Brexit deal if the free trade agreement is not reached by 15 October. Therefore, the chances for a hard Brexit have further increased. Due to this, it is worth a reminder of the temporary permissions regime prepared by certain EU Member States (‘TPR’) which will become applicable in case of a hard Brexit.

The UK Government has implemented TPR to enable continuity of passporting into the UK at the end of the transition period.

The European Commission did not reciprocate with a similar regime; however, individual Member States have taken their steps to enable some business continuity in case of a hard Brexit.

Most countries are permitting the continuation of the MiFID Services passport for the next 6-15 months if the service is aimed at eligible counterparties and professional clients without the need to notify or submit additional applications.

The following is a summary concerning the current position in some of the key EU27 jurisdictions:

Country TPR Rules TPR Duration (Post-Hard Brexit) How to apply Deadline to notify
Austria No TPR available - Please refer to our Brexit Solution.
Belgium Exemption enabling UK firms to provide investment services to new and existing per se professional clients and eligible counterparties post-Brexit; however, the services or activities must be provided or performed in the home State. Unlimited Notify the FSMA specifying the envisaged activity in Belgium and the categories of investors to which they intend to supply their investment services. The notification must be in a prescribed form.

ASAP

Laven can help if required.

Denmark Passporting arrangement enabling UK firms to provide MiFID investment services to new and existing per se professional clients and eligible counterparties post-Brexit. 12 months The Danish regulator is now accepting applications from UK firms to rely on the cross-border licence (temporary cross-border licence).

ASAP

Laven can help if required.

Finland No TPR available - Please refer to our Brexit Solution.
France No TPR available - Please refer to our Brexit Solution.
Germany The UK entities covered by the TPR that have operated in Germany under the European passport regime so far can continue providing certain services without a German licence. 21 months following hard Brexit. No notification required. N/A
Greece No TPR available - Please refer to our Brexit Solution.
Iceland No TPR available - Please refer to our Brexit Solution.
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. Unlimited No notification required. N/A
Italy No TPR available - Please refer to our Brexit Solution.
Liechtenstein TPR applies to all client types, new and existing clients and businesses. 21 months 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. 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. Deadline passed
Netherlands No limits for firms already active through a branch or cross-border passport.
UK firms can service Dutch professional clients and eligible counterparties.  A condition is that the investment firm will need to be supervised in the UK.
Unlimited No licence required but notification to AFM via a published form.
The fees for the notification with the AFM are €4,400.
ASAP
Norway

FSAN have categorically stated that no applications will be reviewed until it is certain that a hard Brexit is the result.
UK  investment firms are not to be permitted to enter into new agreements or extend the duration of existing ones.

Following the expiry of the TPR’s applicability, such firms need to obtain permission from the KNF.

TBC TBC TBC
Poland

UK  investment firms are not to be permitted to enter into new agreements or extend the duration of existing ones.

Following the expiry of the TPR’s applicability, such firms need to obtain permission from the KNF.

12 months No notification required. N/A
Portugal Authorised UK investment firm, asset managers and collective investment funds (MiFID, UCITS, AIFMS and banking services) currently providing investment services and activities on a cross-border basis into Portugal will be able to continue. 6 months Firms must send a form attached to DL 147/2019 to notify the Bank of Portugal whether they will use the transitional period to (i) terminate existing contracts or (ii) make an application to establish a local branch/subsidiary. Within three months after the 31st December 2020.
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).
9 Months No notification required.  N/A
Sweden The SFSA has been given a right to issue regulations, which would give UK MiFID II investment firms the possibility of continuing to provide investment services and activities in Sweden without a license in other situations. Such regulations have, however, not yet been published. Until the end of 2021. No notification required. N/A

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.

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