The Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations, SI 2022/1157, extend by 12 months, transitional arrangements which ensure Gibraltar-based financial services firms are able to provide services in the UK and UK-based firms are able to provide equivalent services in Gibraltar. These temporary arrangements will now run until 31 December 2023.
This is a continuation of the existing ‘passporting’ rights that were required from IP completion day onwards, without which access to each other’s financial services would have abruptly been switched off as a result of Brexit. As the explanatory memorandum to the regulations points out, 95% of Gibraltar’s financial services business is with the UK, so the continuation of access to markets is critical.
In the longer term a new framework, the Gibraltar authorisation regime (GAR) (established under the Financial Services Act 2021), will enable financial market access, subject to certain requirements (for example, that Gibraltar aligns relevant laws and regulatory practices with those of the UK). The explanatory notes to Financial Services Act 2021 Sch 6 and 7 provide a detailed guide to the future arrangements.
The Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations, SI 2022/1157, extend by 12 months, transitional arrangements which ensure Gibraltar-based financial services firms are able to provide services in the UK and UK-based firms are able to provide equivalent services in Gibraltar. These temporary arrangements will now run until 31 December 2023.
This is a continuation of the existing ‘passporting’ rights that were required from IP completion day onwards, without which access to each other’s financial services would have abruptly been switched off as a result of Brexit. As the explanatory memorandum to the regulations points out, 95% of Gibraltar’s financial services business is with the UK, so the continuation of access to markets is critical.
In the longer term a new framework, the Gibraltar authorisation regime (GAR) (established under the Financial Services Act 2021), will enable financial market access, subject to certain requirements (for example, that Gibraltar aligns relevant laws and regulatory practices with those of the UK). The explanatory notes to Financial Services Act 2021 Sch 6 and 7 provide a detailed guide to the future arrangements.
