Following on from our series of newsletters on Brexit updates and no deal preparation, in this newsletter we look in detail at how Spain and Poland are preparing for a no deal scenario. For a brief summary, please see below:
The fundamental provision is that contracts providing for banking, securities, insurance or other financial services entered into in Spain by UK regulated entities (either through a Spanish branch or on a purely cross-border basis) before Brexit will remain in force following the day after a no deal Brexit Day. Article 19.5 of the Real Decreto- ley 5/2019, Royal Decree- law n. 5/2019 (“RDL“) provides that the relevant competent authorities may, within the remit of their respective powers, take additional measures in order to guarantee legal certainty and to safeguard the interests of the users of financial services that could be affected by a no-deal Brexit. Therefore, it is key that a firms next steps should also be to follow up on how the Bank of Spain, the Stock Market Commission and the Directorate General of Insurance and Pension Funds interpret Article 19 of the RDL.
Similar to the measures implemented in Spain and in other EU countries, the Polish Government passed a law on 15 March 2019 providing for contracts entered in Poland by UK regulated entities before Brexit will remain in force following a no deal Brexit. The Polish Brexit Bill provides limited relief measures for UK entities conducting cross-border banking, payment and other financial services in case of a no-deal BrexitThe next steps for UK entities operating in Poland and conducting regulated financial services there, that wish to continue to do so following a no deal Brexit, is to notify the Polish Financial Supervision Authority (KNF) of such intention within one month of the date of a no deal Brexit.
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