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Implications of Brexit on Gibraltar financial services

Implications of Brexit on Gibraltar Financial Services

Gibraltar firms need to prepare for a “no deal” outcome, and time is rapidly running out. What does it mean for your business?

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Implications of Brexit on the Gibraltar Financial Services Business - City through a lens

Gibraltar will leave the EU with effect from 1 November 2019 or, if the withdrawal agreement between the EU and the UK is ratified before 31 October 2019, from the first day of the month following completion of the ratification procedures. 

In this regard, it is not yet certain what will happen as a result of the current UK political situation and the previous decisions of Parliament not to accept the EU-UK withdrawal deal. It does, however, underline that Gibraltar firms need to prepare for a “no deal” outcome and time is rapidly running out.

For this instance, the Gibraltar authorities are introducing a temporary permissions regime (“TPR”) and other transitional arrangements for dealing with firms and funds, based in an European Economic Area (EEA) state that carry out certain types of business or provide services in Gibraltar (“EEA Firms”) that will lose their availability to passport into Gibraltar. The Gibraltar Government’s transitional arrangements will allow EEA Firms to provide services in Gibraltar for a limited period of time, regardless of their loss of passporting rights. 

In contrast with these measures available for inbound EEA Firms, Gibraltar cannot put in place unilateral measures in order to provide contingency measures for the firms and funds based in Gibraltar that conduct business or provide services in the EEA (“Gibraltar Firms”). Though, a lot of EEA countries like Ireland, Italy, Denmark, Norway, Finland, Spain, France or Germany, between much others, are introducing similar measures to the Gibraltar transitional arrangements. 

If you are unsure whether you will need a temporary permission in Gibraltar or rely on EEA national arrangements, the UK regulator recommends seeking legal advice. Our KPMG legal and consulting experts can advise on how to navigate these new frameworks and comply with the regulatory requirements.

KPMG’s network of firms has 2,300+ lawyers operating in 76 jurisdiction, has market leading expertise and experience in advising clients through the different regulatory compliance and authorisation process.

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