Preparing Your Firm for Brexit
The GFSC has engaged with Gibraltar firms on contingency planning, including in the event of a no-deal Brexit. Firms are expected to consider the impact of Brexit and what action, if any, is required.
Gibraltar firms providing services locally and/or in the UK will be able to continue to do so post-Brexit. Firms which carry out business between Gibraltar and the EEA, whether through the exercise of passporting rights or under EU legislation, will be directly affected.
Passporting allows firms authorised in an EEA state to conduct business within other EEA states based on their ‘home’ member state authorisation. Post-Brexit the right to passport across the EU will no longer apply to firms based in Gibraltar.
This will affect:
- Firms and funds based in Gibraltar that conduct business or provide services in the EEA.
- Firms and funds based in the EEA that carry out certain types of business or provide services in Gibraltar.
Firms regulated in Gibraltar should have plans in place to address any risks arising from Brexit. Where firms have made or plan to make any changes to their business model, these changes need to be executed appropriately and avoid any undue harm to consumers.
Firms providing services into the EEA should familiarise themselves with the relevant applicable law in all jurisdictions in which they operate. Post-Brexit there may be instances in which the relevant applicable law of a jurisdiction will allow firms to continue to provide services, for example, where reverse solicitation is permissible.
In the event of a no-deal Brexit, EEA firms providing services in Gibraltar will be able to utilise the TPR to continue servicing consumers for a limited period. The FSP will provide for continuity of contracts post-Brexit.
More information on the TPR and FSP can be found here
Communication with consumers
The protection of consumers is a regulatory objective and a key priority for the GFSC. Firms are expected to ensure that consumers are provided with adequate and timely information on any changes to their products or services resulting from Brexit.
Firms should consider what is the right outcome for consumers and plan accordingly.
Update 27 November 2019
For firms reporting for the purposes of EMIR, this information provides details of expectations in the event of a no-deal Brexit. For firms with an existing arrangement with a UK Trade Repository (TR), they are required to engage with their TR to discuss the functionalities of reporting to the UK and to familiarise themselves with the FCA requirements.
If firms have an European Union TR, they are required to make arrangements with a UK TR ahead of the UK and Gibraltar’s exit from the European Union.
The FCA issued a statement on the reporting of derivatives under the UK EMIR regime in a no-deal scenario which highlights what reporting counterparties need to do.
The list of TRs who intend to operate in the UK post-Brexit can be found here.