Agreement Financial Services

A quick solution therefore does not seem likely. While a possible compromise is likely, the uncertainty and associated delays will lead to further changes, particularly with regard to corporate restructuring, which cannot be easily reversed. If the EU and the UK reach an agreement that allows for broad equivalence in financial services, their strained political ties could lead companies to be reluctant to rely on the stability and longevity of such an agreement. Just look at the change in tone between the EU and Switzerland in 2019 to see how quickly recognition can be withdrawn. Prudential exclusion – As provided for in the CETA agreement between the EU and Canada, nothing in the agreement prevents the UK or the EU from taking or maintaining measures for prudential reasons (Article SERVIN.5.39). Such measures shall include: (a) the protection of investors, depositors, policyholders or persons to whom a financial service provider has a fiduciary duty; or (b) ensure the integrity and stability of the Party`s financial system (Article SERVIN.5.39, paragraph 1). Under this rule, for example, the EU and the UK can unilaterally determine the requirement for surveillance, reporting and continuous monitoring powers in their respective jurisdictions. This may significantly limit the trade-enhancing function of the Financial Services Agreement. 2. Where a Member requires membership in or participation in or access to a self-regulatory organization, a securities or futures exchange or a securities or futures market, a clearing house or any other organization or association in order for financial service providers of another Member to provide financial services on an equal footing with the Member`s financial service providers, or where the Member directly or indirectly provides such entities, privileges, or benefits in the supply of financial services, the Member shall ensure that such entities accord national treatment to financial service providers of another Member established in the territory of the Member. (i) officials who have protected information essential to the establishment, control and operation of the financial service provider`s services; and Joint Statement – Following the Agreement, the UK and the EU issued a Joint Statement on Cooperation in financial services regulation ("Joint Statement"). The parties thus announced structured regulatory cooperation in the field of financial services with the aim of establishing lasting and stable relations between autonomous legal systems and declared their shared commitment to safeguard financial stability, market integrity and investor and consumer protection. They intend to agree on a Memorandum of Understanding by March 2021, which will provide the framework for this cooperation.

The Memorandum of Understanding also contains regulations for the processing of equivalence determinations. 1. A non-resident financial service supplier is a financial service supplier of a Member that supplies a financial service in the territory of another Member from an institution located in the territory of another Member, whether or not such a financial service supplier has a commercial presence in the territory of the Member State in which the financial service is supplied. 3. A new financial service is a service of a financial nature, including services related to existing and new products or the manner in which a product is supplied, that is not supplied by a financial service provider in the territory of a given Member, but in the territory of another Member. (a) non-discriminatory measures that prevent financial service providers from offering in the territory of the Member all financial services authorized by the Member in the form determined by the Member; No more equivalence or mutual alignment – In the agreement, the parties did not provide for a general equivalence regime ("equivalence plus" or "mutual alignment") that was discussed during the negotiations. Under such a system, market access for a wide range of financial services could have been granted on the basis of mutual recognition of their respective regulatory standards. The agreement between the UK and Switzerland, which will cover a wide range of sectors such as insurance, banking, asset management and capital markets, will be negotiated in the coming months.4 For financial services companies already operating in Europe or looking to establish a presence there, these developments are remarkable as financial services companies continue to operate in markets affected by COVID-19 and are located in a delicate situation. Ongoing pandemic preparedness as they ponder how to launch the launch. Economic recovery.5 Financial services firms also need to adapt to a much faster pace of digitalisation and a general transition to a "new dynamic"6, as well as to stronger prudential supervision and more complex regulatory requirements. However, London, a fully-fledged global financial centre, has been strengthened by its role as a gateway to the EU-27.

It is now geared towards a more global repositioning, and the upcoming revision of the UK`s strategy may well boost more new revenue streams from new markets. In response, the UK is seeking greater global convergence of financial standards to facilitate the activities of financial services companies in different jurisdictions.27 In particular, the UK hopes to gain access to the financial services market in jurisdictions such as Japan and the US through mutual recognition of equivalence of rules, as it plans to do with Switzerland.28 11. With respect to the non-discriminatory measures referred to in points (a) and (b) of paragraph 10, a Member shall endeavour not to limit or limit the current level of market opportunities or the benefits already enjoyed by financial service providers of all Non-Class Members in the territory of the Member, provided that such obligation does not result in unfair discrimination against the Member`s financial service providers: which applies these measures. (b) non-discriminatory measures limiting the extension of the activities of financial service providers to the entire territory of the Member State; (b) reinsurance and retrocession and insurance-related services referred to in point (a)(iv) of the first subparagraph of the Annex; February 2021 has therefore shown that sensitivities in financial services will continue even after Brexit. For all types of financial services companies, regardless of their post-Brexit operational readiness, these developments are important as they impact structuring and resource options as London`s European operations move towards a more multi-centre financial model. (c) the provision and transmission of financial information and the processing of financial data referred to in point (a)(xv) of the first subparagraph of the Annex, as well as advisory and ancillary services other than insurance in relation to banking and other financial services as defined in point (a)(xvi) of the first subparagraph of the Annex. Each Member shall include existing monopoly rights in its schedule of financial services and shall endeavour to eliminate or limit their scope. Notwithstanding point (b) of the first subparagraph of the Financial Services Annex, this paragraph shall apply to the activities referred to in point (b)(iii) of the first subparagraph of the Annex.

DocuSign Agreement Cloud for Financial Services can help you modernize your contracts to automate processes, shorten lead times, and digitize important financial documents. With the EU-UK Trade and Cooperation Agreement of 24 December 2020 ("Agreement"), the UK and the EU have fundamentally changed market access for financial services companies. From 1 January 2021, UK financial services companies wishing to operate in the EU will no longer be allowed to use the European single market and offer their services across borders on the basis of the European passport. Therefore, the impact of the financial services deal is more severe than on trade and is closer to the impact of a no-deal (hard) Brexit. In particular, London`s role as a hub for the EU financial market will change as services such as trade in EU shares move to the continent. Ready for some financial advice? A financial services contract is a contract between you and your financial advisor. .