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27th October 2020, 15:41

Government publishes Technical Notice on Financial Services as transition period deadline approaches

The Government has published a Technical Notice for guidance on Financial Services in preparation for the end of the transition period on 31st December.

This latest Notice reviews the position if there is no future relationship agreement between the UK and the EU, and covers arrangements between Gibraltar and the UK.

Number Six has stressed however, that arrangements between the UK and Gibraltar will continue regardless of whether there is an agreement on a future relationship with the EU.

The Government is consulting on a new Gibraltar Authorisation Regime, known as GAR, which could provide permanent UK market access for Gibraltar-based financial services firms.

In a Technical Notice on Financial Services, the Government notes the recent provision in UK law to preserve passporting arrangements between the UK and Gibraltar after the 31st December.

However, GAR would provide for continued access in the future and as such the UK Government's Financial Services Bill contains a part dedicated to the proposal.

The Government will also be introducing a Temporary Permissions Regime to address the loss of EU passporting rights for firms in the European Economic Area operating in Gibraltar. This will allow them to have continued access to the Gibraltar market for a limited time-period, allowing them to apply for full authorisation from the Financial Services Commission.

The Technical Notice also addresses the split of responsibilities, with many functions currently carried out at EU level to be re-assigned to the Gibraltar Government and the Commission.

The Government says it's unclear as yet whether any future agreement between the UK and the EU will be supported by reciprocal 'equivalence', but adds that irrespective of whether or not agreements are found, the arrangements between the UK and Gibraltar with respect to market access in financial services are unaffected by any future relationship with the EU.

You can find the full notice here