September 18, 2020

Volume X, Number 262

September 17, 2020

Subscribe to Latest Legal News and Analysis

September 16, 2020

Subscribe to Latest Legal News and Analysis

September 15, 2020

Subscribe to Latest Legal News and Analysis

ECB Blog on Preparation for the End of the Brexit Transition Period

On July 9, the European Central Bank (ECB) published a blog by Yves Mersch, member of the Executive Board of the ECB and vice-chair of the Supervisory Board of the ECB, on the preparations of European Union (EU) banks for the end of the Brexit transition period (the Blog).

The ECB notes that banks in the EU and United Kingdom (UK) post-Brexit will no longer enjoy the benefits of the single EU market. Consequently, it is crucial that banks focus on progressing towards their target post-Brexit operating models.

In the Blog, the ECB welcomes the European Commission’s announcement regarding the temporary equivalence of UK central counterparties, but banks must nonetheless prepare for post-Brexit in this area. The temporary equivalence should provide the industry with more time to adjust clearing operations to the UK’s new status as a third country. For more information on this topic, please see the advisory prepared by Katten, available here.

The ECB also clarifies that banks, which have failed to hire staff with sufficient seniority and skills, neglected to make necessary transfers of material assets or unduly split trading desks across multiple legal entities, will not be considered as complying with the ECB’s requirements. The ECB believes that its expectations are very clear: all activities related to EU products or EU customers should, as a general principle, be managed and controlled from entities located in the EU.

The Blog is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 199

TRENDING LEGAL ANALYSIS


About this Author

Carolyn H. Jackson, International Attorney, Katten Muchin law firm
Partner

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws...

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring and documentation relating to OTC derivatives and structured products.

Prior to joining Katten, Nathaniel was a member of the US Regulatory and the Derivatives and Structured Finance practices at Allen & Overy LLP.

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London
Partner

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...

44-0-20-7776-7666