March 2, 2021

Volume XI, Number 61

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March 02, 2021

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March 01, 2021

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EEA Passport Rights Regulations 2018 Published

On November 7, the European Economic Area (EEA) Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 (Passport Rights Regulations) were published together with an associated explanatory memorandum.

The Passport Rights Regulations remove references to the EU’s passporting framework from UK legislation. Additionally (as previously explained here), they establish a temporary permissions regime (TPR) to enable EEA financial services firms currently operating in the United Kingdom using a passport to continue their activities in the United Kingdom for a limited period after the United Kingdom’s withdrawal from the European Union on March 29, 2019 (Exit Day), if there is no transition period.

The Prudential Regulation Authority (PRA) also published a direction on November 7 that it gave under the Passport Rights Regulations. The PRA directs EEA firms, authorized by the PRA and that are carrying on a regulated activity in the United Kingdom under passporting arrangements, to notify it if they intend to obtain a deemed permission or variation under the TPR. Firms will have to make notifications by submitting the Temporary Permission Notification Form using the UK Financial Conduct Authority’s Connect system, or by submitting an application to the PRA before Exit Day for UK-specific authorization as a branch. There will be no fee for notifications to enter the TPR and entry into the TPR will be confirmed by email.

The Passport Rights Regulations became effective on November 7, with the exception of certain regulations (such as the repeal of passport rights), which will become effective on Exit Day. EU firms wishing to file Temporary Permission Notification Forms must do so between January 7, 2019, and March 28, 2019.

The Passport Rights Regulations are available here.

The explanatory memorandum is available here.

The PRA’s direction is available here.

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©2020 Katten Muchin Rosenman LLPNational Law Review, Volume VIII, Number 313
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John Ahern, Financial Attorney, London, Katten Law Firm
Partner

John Ahern, partner at Katten Muchin Rosenman UK LLP and head of the London Financial Services group, focuses his practice on banking, financial services, UK and European financial markets, and related regulations. His background in private practice and as in-house counsel at a global investment bank provides him with perspective on the unique regulatory issues facing the wholesale and private banking sectors. John advises multilateral trading facilities, broker-dealers and banks on trading, clearing and settlement as well as custody of securities—both physical and...

+44 (0) 20 7770 5253
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...

+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...

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