Following the UK’s withdrawal from the EU and the subsequent end of the transition period on 31 December 2020, passporting rights have ceased and the EU Single Market has become two separate markets.

Post-Brexit EU-UK financial services are negotiated largely outside the Trade and Cooperation Agreement, agreed by both jurisdictions on 31 December 2020.

The British Government announced in November 2020 a package of equivalence decisions under which EU and EEA firms are equivalent for the purposes of regulation in the UK, together with guidance on the UK’s approach to equivalence in future.

UK financial services regulation is expected to diverge from the EU regulation as a result of reviews of the future of the UK financial services and its regulatory framework. This includes a Treasury Committee inquiry on the future of financial services and the HM Treasury's review of the Future Regulatory Framework (FRF).

The EU’s approach to cross-border financial services with the UK and other third countries is to decide whether or not to grant regulatory equivalence. There are provisions for equivalence in some (eg central clearing counterparties) but not all EU financial services regulations. Furthermore, certain financial services aspects are now governed by several Memoranda of Understanding (MoUs) between the FCA and European authorities.

ICMA’s approach to Brexit and associated developments is to focus on its potential impact upon international capital markets. In addition:
  • ICMA is not lobbying for any particular financial centre: ICMA’s members are based in London, the EU and more broadly; ICMA is an international organisation with members in over 60 countries.
  • ICMA is discussing the capital market implications of post-Brexit developments with members through its main ICMA Market Practice and Regulatory Policy Committees and reporting to the ICMA Board.
  • ICMA is keeping in contact with the authorities in the UK, the EU and the euro area.
  • ICMA is cooperating with other trade associations by sharing information, wherever possible.
  • ICMA is keeping members up-to-date on post-Brexit developments by giving them regular assessments through the ICMA Quarterly Report and conference calls.

ICMA materials

The post-Brexit impact on the international bond market
(From the ICMA Quarterly Report Second Quarter dated 14 April 2021).

The post-Brexit impact on primary markets
(From the ICMA Quarterly Report Second Quarter dated 14 April 2021).

The post-Brexit impact on secondary and repo markets
(From the ICMA Quarterly Report Second Quarter dated 14 April 2021).

The post-Brexit impact on asset management
(From the ICMA Quarterly Report Second Quarter dated 14 April 2021).

The post-Brexit agreement and international capital markets
(From the ICMA Quarterly Report First Quarter dated 12 January 2021).

ICMA’s post-Brexit podcast: implications for capital markets
Paul Richards, Head of ICMA’s Market Practice & Regulatory Policy, Charlotte Bellamy, Senior Director, Primary Markets and Lisa Cleary, Senior Director & Associate Counsel, provide an overview of the implications for international capital markets from the end of the post-Brexit transition period, including changes to ICMA’s primary market documentation and the existing guidance for the Global Master Repurchase Agreement (GMRA) (17 December 2020)

ICMA Note on Article 55 of the BRRD and post-Brexit transition period
(13 November 2020).

ICMA ERCC Recommendations for Reporting under SFTR
A detailed breakdown of the post-Brexit reporting obligations under SFTR and MiFIR for UK, EU and non-EU counterparties is included in the latest edition of the ICMA SFTR recommendations (section 1.16) (last updated: 29 October 2020).

Post-Brexit: the way ahead in international capital markets
(From the ICMA Quarterly Report Fourth Quarter dated 8 October 2020).

ICMA Podcast - Post-Brexit: the way ahead in international capital markets
Paul Richards, ICMA’s Head of Market Practice and Regulatory Policy, provides an update on the issues that arise at the end of the post-Brexit transition period, both for market firms based in the EU and in the UK, covering: the loss of passporting rights; market access; regulatory equivalence; cliff-edge risks; the need for regulatory and supervisory cooperation; and the state of market preparations (10 September 2020).

Post-Brexit: should the transition period be extended?
(From the ICMA Quarterly Report Second Quarter dated 6 April 2020).

ICMA’s approach to Brexit
(From the ICMA Quarterly Report First Quarter dated 10 January 2020).

ICMA members only: Briefing call for ICMA Asia-Pacific members on Brexit and potential implications for international capital markets
(Thursday, 24 October 2019)

Brexit: can capital market fragmentation be avoided?
(From the ICMA Quarterly Report Fourth Quarter dated 10 October 2019).

Brexit in the international capital markets
(From the ICMA Quarterly Report Second Quarter dated 12 April 2019).

ICMA members only: Briefing call on preparations for Brexit in the international capital markets
(Wednesday, 6 March 2019)

Preparations for Brexit in international capital markets
(From the ICMA Quarterly Report First Quarter dated 10 January 2019).

Brexit: cliff-edge risks in international capital markets
(From the ICMA Quarterly Report Fourth Quarter dated 11 October 2018).

Brexit: cliff-edge risks in international capital markets: June 2018
(ICMA open letter to senior political leaders in the EU27 and UK - dated 22 June 2018).

The Brexit negotiations and the international capital markets: April 2018
(From the ICMA Quarterly Report Second Quarter dated 12 April 2018).

Capital Markets Union and Brexit: October 2017
(From the ICMA Quarterly Report Fourth Quarter dated 12 October 2017).

Brexit: addressing risks in international capital markets: July 2017
(From the ICMA Quarterly Report Third Quarter dated 12 July 2017).

International capital market fragmentation: April 2017
(From the ICMA Quarterly Report Second Quarter dated 6 April 2017).

The Brexit negotiations and the international capital markets: January 2017
(From the ICMA Quarterly Report First Quarter 2017 dated 1 January).


Joint trade associations materials

7 December 2018
Letter to Vice-President Dombrovskis – temporary equivalence and recognition in relation to UK CCPs

8 November 2018 
Form of letters to European Commission, Parliament and Council on the Investment Firm Regulation – third country firm regime





Contact:

Paul Richards
Managing Director, Head of Market Practice and Regulatory Policy; Member of ICMA's Executive Committee
Direct line: +44 20 7213 0315
ICMA Zurich

T: +41 44 363 4222
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8002 Zurich
ICMA London

T: +44 20 7213 0310
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London EC4N 6EU
ICMA Paris

T: +33 1 70 17 64 72
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75008 Paris
ICMA Brussels

T: +32 2 801 13 88
Avenue des Arts 56
1000 Brussels
ICMA Hong Kong

T: +852 2531 6592
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Lippo Centre
89 Queensway, Admiralty
Hong Kong
 
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