Brexit: Temporary Permissions Regime, Financial Services Contracts Provisions and EEA Insurers Regime

 

In the event of a no-deal scenario, the Government announced the introduction of a Temporary Permissions Regime (TPR) that will permit EEA firms that currently passport into Gibraltar to continue to do so for a limited period. These provisions will commence in the event of the United Kingdom exiting the European Union without agreement. 

This will allow firms wishing to maintain their Gibraltar business to apply for full authorisation from the GFSC.

EEA firms and funds that operate in Gibraltar and want to utilise the TPR will need to inform the GFSC.

The Government announced the introduction of a Temporary Permissions Regime (TPR) that will permit EEA firms that currently passport into Gibraltar to continue to do so for a limited period. 

The Temporary Permissions Regime (TPR) is now in effect.

Passporting rights have now ceased and EEA firms who were formerly operating through a passport in Gibraltar under the European passport framework now require to be authorised in Gibraltar to be able to continue carrying out regulated activities who were formerly operating through a Freedom of Establishment passport.

This will allow firms wishing to maintain their Gibraltar business to apply for full authorisation from the GFSC.

The Government had also agreed to introduce Financial Services Contracts Provisions (FSP) to allow for the continuity of pre-existing contracts. It was proposed that the FSP has effect for not more than:

 1.       Fifteen years, for the purpose of performing a pre-existing contract of insurance; or

 2.       Five years, for the purpose of performing any other pre-existing contract.

If you do not wish to continue operating in Gibraltar please review your existing contracts to ensure that you comply with local legislation.

A Specified EEA Insurers Temporary Exemption Regime has also been agreed upon.  

The Regulations provide a temporary exemption from the general prohibition for those EEA insurers (which ceased to have ‘passport’ rights on EXIT day) that will enable them to continue to conduct business in Gibraltar after EXIT date. The firm will then be invited to seek exempt status under separate Exemption Regulations made under the Act.  Details of this will be published in due course.

For more information on the Temporary Permissions Regime and the Financial Services Contracts Provisions, please see the draft Financial Services (Passport Rights and Transitional Provisions) (EU Exit) Regulations 2019. For more information on the EEA Insurers Regime please see the Financial Services (Specified EEA Insurers) (Temporary Exemption) Regulations 2020. 

For Temporary Recognition for UCITS please use the TPR form below.

For any queries, please contact brexit@gfsc.gi

 

Application Forms

  Temporary Permissions Regime and Financial Contracts Regime Form

 

  EEA Insurers Regime Form