Following the UK’s withdrawal from the EU on 31 January 2020, the EU Single Market is expected to become two separate markets when passporting rights cease at the end of the transition period on 31 December 2020.

ICMA’s approach to Brexit is to focus on its potential impact on international capital markets, particularly the need to address and avoid cliff-edge risks which arise when passporting rights between the EU and the UK cease; and the scope for regulatory equivalence between the EU and the UK after Brexit. 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 63 countries.
  • ICMA is discussing the capital market implications of Brexit 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 Brexit by giving them regular assessments through the ICMA Quarterly Report and conference calls.
  • ICMA has posted on its website for members an ICMA Brexit FAQ, focusing on ICMA’s own documentation; and is monitoring the need to update its documentation and standard language; and
  • ICMA is keeping its Brexit webpage up-to-date, both with its own work, and also with electronic links to key documents published by the authorities in the EU27 and the UK, and with links to the webpages of law firms and others.
The ICMA Legal & Regulatory Helpdesk and ICMA’s staff are available to answer members’ questions.


ICMA

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).


ICMA Brexit FAQs and Member Directories

ICMA’s responses to Frequently Asked Questions (“FAQs”), consider certain issues that have been raised with ICMA in the light of Brexit (updated 22 October 2019).

ICMA’s SMPC and ERCC are maintaining a directory of member firms contact details* for relevant in-house experts for Brexit related issues affecting secondary bond and repo markets. If you wish to include your own firm’s contact details, please contact us.


Joint trade associations

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


Official sector

EU/UK

Council of the European Union: Council gives go-ahead for talks to start and adopts negotiating directives 25 February 2020

Council of the European Union:  European Council adopts decision to extend the period under Article 50  29 October 2019

European Commission: Consolidated Revised Withdrawal Agreement as agreed at negotiators’ level and endorsed by the European Council 17 October 2019

European Commission: Revised Political Declaration setting out the framework for the future relationship between the European Union and the United Kingdom 17 October 2019

European Securities and Markets Authority: Update on the UK’s Withdrawal from the EU – Preparations for a Possible No-deal Brexit Scenario on 12 April 28 March 2019

Council of the European Union: European Council adopts decision extending the period under Article 50 22 March 2019

ESMA to recognise three UK CCPs in the event of a no-deal Brexit 18 February 2019

ESMA has agreed MoUs with the BoE for the recognition of CCPs and of the CSD established in the UK, that would take effect should the UK leave the EU without a withdrawal agreement 4 February 2019

ESMA and European securities regulators have agreed MoUs with the UK FCA, as part of authorities’ preparations should the UK leave the EU without a withdrawal agreement 1 February 2019

Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, as endorsed by leaders at a special meeting of the European Council 25 November 2018

Political Declaration setting out the framework for the future relationship between the European Union and the United Kingdom
25 November 2018

European Commission: Fact Sheet: Brexit Negotiations: What is in the Withdrawal Agreement 14 November 2018

Draft Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, as agreed at negotiators' level on 14 November 2018

Outline of the Political Declaration setting out the Framework for the future relationship between the European Union and the United Kingdom 14 November 2018

Joint Report from the Negotiators of the EU and the UK Government: Joint report on progress during phase 1 of negotiations under Article 50 TEU on the UK’s orderly withdrawal from the EU 8 December 2017


EU

European Commission: Statement by Michel Barnier at the presentation of the Commission's proposal for a Council recommendation on directives for the negotiation of a new partnership with the UK 3 February 2020

Financial Conduct Authority: EEA Member State regimes on Brexit 11 September 2019

European Securities and Markets Authority: ESMA sets out use of UK data in ESMA databases under a no-deal Brexit 5 February 2019

European Securities and Markets Authority: ESMA issued a public statement on how derivatives data reported under EMIR should be handled in the event of a no-deal Brexit scenario 1 February 2019

European Securities and Markets Authority: ESMA has issued three Q&As regarding the Prospectus Directive (PD) and the Transparency Directive (TD), clarifying the application of certain provisions in these Directives in case of a no-deal Brexit scenario 31 January 2019

European Securities and Markets Authority: Public statement: Use of UK data in ESMA databases and performance of MiFID II calculations in case of a no-deal Brexit 5 February 2019

European Securities and Markets Authority:
ESMA is ready to review UK CCPS and CSDS’ recognition applications for a no-deal Brexit scenario 19 December 2018

European Commission:
European Commission implements “no-deal” Contingency Action Plan in specific sectors 19 December 2018

European Central Bank:
Financial Stability Review (see Chapter 3. Euro area financial institutions) 25 November 2018

European Securities and Markets Authority:
Managing risks of a no-deal Brexit in the area of central clearing 23 November 2018

European Commission: Commission Communication: Preparing for the withdrawal of the UK from the EU on 30 March 2019: a Contingency Action Plan 13 November 2018

European Securities and Markets Authority: ESMA proposes a regulatory change to support the Brexit preparations of counterparties to uncleared OTC derivatives: press release 8 November 2018

European Central Bank: Updated page on relocating to the euro area 2 August 2018

European Commission:
Response to ICMA open letter on Brexit cliff-edge risk 19 July 2018

European Commission:
Preparing for the withdrawal of the United Kingdom from the European Union 19 July 2018

European Banking Authority:
Opinion to hasten the preparations of financial institutions for Brexit 25 June 2018

European Council: Draft guidelines on the framework for the future relationship with the UK 7 March 2018

European Commission: European Commission publishes draft Article 50 Withdrawal Agreement 28 February 2018

European Commission: Commission receives mandate to begin negotiations with the United Kingdom on transitional arrangements 29 January 2018

European Commission: Commission's recommendation including supplementary negotiating directives 20 December 2017

European Securities and Markets Authority: Sector specific principles on relocations from the UK to EU27 13 July 2017

European Research Centre for Economic and Financial Governance: Implications of Brexit on EU Financial Services 15 June 2017

European Commission: Proposed changes to EMIR (including on third-country CCPs such as Euro clearing) 13 June 2017


European Securities and Markets Authority: General principles to support supervisory convergence in the context of the UK withdrawing from the EU 31 May 2017

European Council: Guidelines for Brexit negotiations: 29 April 2017

European Council: Draft guidelines following the UK’s notification under Article 50: 31 March 2017

European Commission: Taskforce on Article 50

European Commission: Working paper on EU equivalence: 27 February 2017


UK

HM Government:
Letter from David Frost to Michel Barnier on UK draft legal texts 19 May 2020

HM Government: The Future Relationship with the EU 27 February 2020

HM Government: David Frost lecture: Reflections on the revolutions in Europe 17 February 2020

HM Government:
The Future Relationship between the UK and the EU 3 February 2020

HM Government: Prime Minister Boris Johnson's speech in Greenwich 3 February 2020

HM Government:
Parliament passes European Union (Withdrawal Agreement) Act 2020 into law 22 January 2020

Financial Conduct Authority: Speech by Andrew Bailey, Preparing for Brexit in financial services: the state of play 16 September 2019

HM Government:
Prime Minister’s Letter to President of the European Council on Extending Article 50 5 April 2019

Financial Conduct Authority:
Speech by Nausicaa Delfas, Executive Director, on Brexit and beyond 21 March 2019

Bank of England:
Financial Policy Committee Summary and Record 5 March 2019

Bank of England:
Approach to financial services legislation under the European Union (Withdrawal) Act 2018 28 February 2019

Financial Conduct Authority: FCA confirms proposals in the event of a no-deal Brexit 28 February 2019

Financial Conduct Authority: PS19/5: Brexit Policy Statement and Transitional Directions 28 February 2019

Financial Conduct Authority: Brexit briefings for regulated firms (London, 11 March and Edinburgh, 14 March, with webcast recordings available) 15 February 2019

Financial Conduct Authority: The FCA sets out how it would use the temporary transitional power in a no-deal Brexit scenario 1 February 2019

Financial Conduct Authority:
Notification window for the temporary permissions regime now open 7 January 2019

Bank of England:
Statement on equivalence of the future UK legal and supervisory framework for central counterparties and central securities depositories 19 December 2018

Financial Conduct Authority: Preparing your firm for Brexit 13 December 2018

Financial Policy Committee: Record of meetings on 20 and 27 November 2018 5 December 2018

Bank of England: EU withdrawal scenarios and monetary and financial stability 28 November 2018

HM Government:
EU Exit Long-term economic analysis 28 November 2018

HM Government:
Banking, insurance and other financial services if there’s no Brexit deal 23 August 2018

HM Government:
Response to ICMA open letter on Brexit cliff-edge risk 6 August 2018

HM Government:
The future relationship between the United Kingdom and the European Union 12 July 2018

Bank of England: Approach to financial services legislation under the European Union (Withdrawal) Act 27 June 2018

Financial Conduct Authority: The FCA’s role in preparing for Brexit 27 June 2018

HM Treasury:
Financial services legislation under the EU (Withdrawal) Act 27 June 2018

The Chancellor of the Exchequer: Speech on financial services 7 March 2018

HM Government: Prime Minister's speech on our future economic partnership with the European Union 2 March 2018

HM Government: A new era of cooperation and partnership between the UK and the EU: The Prime Minister’s speech Florence: 22 September 2017

Financial Conduct Authority: Why free trade and open markets in financial services matter 6 July 2017

Prudential Regulation Authority: Letter to banks on Brexit planning: 7 April 2017

HM Government: Prime Minister’s letter to President Tusk triggering Article 50: 29 March 2017

HM Government: The United Kingdom’s exit from and new partnership with the European Union: Cm 9417: 2 February 2017

HM Government: The government's negotiating objectives for exiting the EU: The Prime Minister’s speech at Lancaster House: 17 January 2017


Further Information

AFME  https://www.afme.eu/en/key-issues/brexit/

Allen & Overy  http://www.allenovery.com/brexit

Ashurst  https://www.ashurst.com/brexit

Bell Gully  https://www.bellgully.com/Brexit

Clifford Chance  https://financialmarketstoolkit.cliffordchance.com/brexit

Freshfields  http://www.freshfields.com/en-gb/our-thinking/campaigns/brexit/

Herbert Smith  http://www.herbertsmithfreehills.com/brexit

KWM  http://www.kwm.com/uk/brexit

Linklaters  http://www.linklaters.com/brexit

Macfarlanes  http://www.macfarlanes.com/news-insights/brexit-analysis

McCann FitzGerald  http://www.mccannfitzgerald.com/brexit

Morrison & Foerster  https://www.mofo.com/special-content/brexitbriefings

Norton Rose  http://www.nortonrosefulbright.com/brexit

Ogier  http://www.ogier.com/brexit

Shearman & Sterling  http://www.shearman.com/brexit

Simmons & Simmons  http://www.elexica.com/brexit

Slaughter and May  https://www.slaughterandmay.com/brexit

Taylor Wessing  https://united-kingdom.taylorwessing.com/brexit


EU27 national legislation

Ashurst: Jurisdictional analysis of local transitional arrangements in the event of a Hard Brexit

Norton Rose: Brexit: Doing business in the EU

Simmons and Simmons: How to provide financial services in key European jurisdictions

The Investment Association: EU27 domestic transitional measures




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
Dreikönigstrasse 8
8002 Zurich
ICMA London

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

T: +33 1 70 17 64 72
62 rue la Boétie
75008 Paris
ICMA Hong Kong

T: +852 2531 6592
Unit 3603, Tower 2
Lippo Centre
89 Queensway, Admiralty
Hong Kong
 
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