On 8 October 2019, the UK Government published its ‘No-Deal Readiness Report’ in preparation of the potential likelihood of the UK’s withdrawal from the EU without a deal. In the foreword of the report, UK Prime Minister, Boris Johnson reiterates his position that the UK must be prepared to leave the EU on 31 October 2019, with or without a deal. The report, consisting of information and data gathered over the last three months, outlines the efforts taken by UK institutions to prepare for a no-deal Brexit scenario.
As regards financial services (page 71 of the report), the UK Government insists that it has delivered a programme of legislation and temporary measures to ensure there is a functioning standalone regime for financial services once the UK leaves the EU, with or without a deal. A key objective in these preparations is transferring functions carried out by the EU to UK supervisory bodies and introducing a range of temporary permissions and transitional regimes to smooth the transition for firms and consumers. This includes the introduction of more than 50 statutory instruments to amend EU legislation that will form part of UK law on 31 October 2019.
The UK Government also welcomes the steps taken by the EU and various Member States to mitigate certain risks to the financial services sector that could arise in the event of a no-deal scenario.
We have recently updated our briefing note on the measures that Member States are implementing for a no-deal Brexit. See our previous blog for further information.