Advice for Global Shares’ clients regarding our Brexit planning
Impact of Brexit and Actions Global Shares Execution Services Limited are taking.
Under the UK’s EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 (S.I. 1149 of 2018), HM Government established a temporary permissions regime for ﬁnancial services ﬁrms. The intent of the Regulations is to enable European Economic Area (EEA) ﬁnancial services ﬁrms, including Global Shares Execution Services Limited, to continue their UK operations post-Brexit without undue disruption in the event of a “no deal” Brexit. The legislation indicates that the temporary permissions scheme would be put in place for a three-year period, beginning when the UK leaves the EU. HM Treasury would have the power to extend the scheme by up to one year at a time if, having received an assessment from the PRA and FCA of the eﬀect of not extending the scheme, HM Treasury considers it necessary to do so. We also note the statements of the PRA and the FCA. These statements are in line with HM Treasury’s Brexit temporary permissions plan.
Global Shares has joined the FCA’s temporary permissions scheme. The FCA has indicated that it will in the future allocate ﬁrms utilising the temporary permissions scheme “landing slots” i.e. prescribed three-month periods within which they must apply for authorisation. The FCA would conﬁrm these slots after Brexit, with the ﬁrst slot likely to be late 2019 and possibly into 2020. If it is a requirement at that stage, Global Shares will apply for the relevant FCA licence to ensure we can continue to provide a seamless service to our clients, although by that stage it is also possible that the UK may have made an adequacy decision allowing EU MiFID ﬁrms to trade in the UK without the requirement for a formal licence application. Either way, we expect to be able to trade without interruption in the UK.
Implications of any corporate restructuring and Impact on contractual rights
At this stage, in common with many observers, Global Shares is adopting a “wait and see” approach to Brexit, while still ensuring that all legal and regulatory requirements are dealt with. We do not at this stage believe that there will be any requirement for corporate restructuring or any signiﬁcant impact on contractual rights. Global Shares will closely observe all relevant developments and if that situation changes, we would expect to make contact with our clients in due course.