The Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2020 (SI 2020/1274), together with an explanatory memorandum were yesterday published online by the UK Government.
The 2020 Regulations, which were made on 12 November 2020, amend the Financial Services (Gibraltar) (Amendment) (EU Exit) Regulations 2019 (SI 2019/589) (2019 Regulations) to extend the transitional arrangements under Parts 2 and 3 of the 2019 Regulations.
These transitional arrangements will enable specified categories of Gibraltar-based firms to provide financial services in the UK and facilitate the access by similar types of UK-based firms to Gibraltar’s financial services market. Regulation 12 of the 2019 Regulations specify that the transitional arrangements will expire on 31 December 2020 but give HM Treasury power by regulations to keep them in force for successive periods of 12 months. The amendments will also facilitate the access by similar types of UK-based firms to Gibraltar’s financial services market for a 12 month period.
The Financial Services Bill will establish a new legal and institutional framework that provides for mutual market access and aligned standards in financial services between the two jurisdictions, the Gibraltar Authorisation Regime ("GAR"). The access of Gibraltar-based firms to the UK’s wholesale and retail markets will be conditional on Gibraltar aligning its relevant law and practice with that of the UK, on that access being compatible with certain objectives, such as protection of financial stability and consumers, as well as on the UK and Gibraltarian governments and regulators closely cooperating as part of this regime. The Financial Services Bill will also make provisions to facilitate the access of UK-based firms to the Gibraltarian market.
The 2020 Regulations extend the transitional arrangements by 12 months to 31 December 2021 and will come into force on 14 December 2020.