There was no way we were going to escape having more acronyms foisted on us with something as big and complex and messy as Brexit. Here are a few of the important ones to kick off with. Let me know if you have more to add!
In sum, the purpose of the EUWA is to avoid leaving large legal holes when the UK leaves the EU and the existing EU laws stop applying.
The EUWA is the UK law which will repeal the European Communities Act 1972 on the day the UK leaves the EU and convert into UK domestic law the existing body of directly applicable EU law. The EUWA also gives Ministers powers to make Statutory Instruments (SIs) (see below) to prevent, remedy or mitigate any failure of EU law to operate effectively, or any other deficiency in retained EU law.
“SI” is already a well known acronym in the MiFID world as short-hand for “Systematic Internaliser”. But with Brexit, the other meaning of “SI” – Statutory Instrument – has come to prominence.
An SI is a UK piece of secondary legislation that has been passed by the UK Parliament. SIs are not specific to Brexit but with the UK Government making contingency laws ready for exit day, bringing EU rules into UK law, the Government has published hundreds of draft SIs in the last few months. We now have, for example, a draft MiFID II SI which will replace the EU MiFID II/MiFIR level 1 legislation in the event the UK leaves the EU on 29 March 2019 without a deal. You can find out more about SIs on the Government webpage here.
In the EU, level 2 rules drafted by a European Supervisory Authority (e.g. ESMA, EBA, EIOPA) are called implementing technical standards (ITS) or regulatory technical standards (RTS). Because ITS and RTS are EU rules and will cease to apply when the UK leaves the EU, the UK regulators are transposing the ITS and RTS into UK rules in preparation for Brexit and calling them “BTS”. In short, a BTS is the UK version of an RTS or ITS. You can find out more about EU rule-making, ITS and RTS in this article.
The temporary permissions regime (TPR) will allow EEA firms and funds to continue regulated business in the UK, if the UK leaves the EU in March 2019 without an implementation period in place. Firms and funds will need to notify the FCA that they wish to use the TPR. The FCA plans to open an online notification window in early 2019 which will close prior to exit day (29 March 2019). The temporary permission will last for a maximum of 3 years, but during this period the firm/fund will be asked to submit their application for full authorisation in the UK and subsequently leave the TPR. Find out more here.
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Financial services regulatory consultancy, specialising in MiFID II: resources, training & tips