As part of our Brexit preparations, we will make a rule to preserve the existing Handbook treatment in respect of Gibraltar in the post exit day Handbook.
As stated in CP18/29, on the day we leave the European Union, we intend to maintain the current regulatory position on Gibraltar within our Handbook. This position is in line with the Government’s commitment that Gibraltar financial services firms should, until December 2020, have the same market access in the UK as they do now.
For Gibraltar-based firms able to exercise passport rights, the Government’s commitment means they will continue to be able to exercise such rights on exit day. As a result, they will not enter the temporary permissions regime or the financial services contracts regime for firms or funds wishing to operate in the UK from the European Economic Area.
These arrangements will be accompanied by an SI seeking to preserve the pre-exit regulatory provision in relation to Gibraltar more widely, unless specifically provided otherwise, to support continued market access between the UK and Gibraltar more generally.
We have published the draft rules and the guidance (PDF). We intend to finalise them shortly before the UK leaves the European Union.
This approach will mean that the Financial Services Compensation Scheme (FSCS) will continue to apply in respect of Gibraltar firms exercising deemed passport rights in the UK as it does today.
The Government’s commitment on market access runs until the end of 2020. We will consult in due course in relation to Handbook changes that will apply after this date.