The limited scope of equivalency schemes and the EU`s full right to withdraw a 30-day equivalency in advance mean that it will be difficult for companies to base business or financial agreements on the availability of such equivalence, and the only reasonable way would be to make arrangements as if equivalence did not exist. Information on all our Brexit and financial market briefings can be found in our Financial Markets Toolkit. The UK`s exit from the European Union is an important and complex process that has a huge impact on how we take responsibility. Many parts of the Bank have worked closely together to assess the potential impact of an EU exit on our political objectives of monetary and financial stability. The EU and the UK have reached an agreement on the withdrawal agreement with a revised protocol on Ireland and Northern Ireland (abolition of the “backstop”) and a revised political declaration. On the same day, the European Council (Article 50) approved these texts. The withdrawal agreement between the European Union and the United Kingdom sets out the conditions for the UK`s orderly exit from the EU, in accordance with Article 50 of the Treaty on european Union. The practical implications of the agreement on financial institutions in the UK can be summed up as follows: 22 September 2020: In collaboration with the Bank of England, we have published consultation paper 13/20 entitled `UK withdrawal from the EU: changes before the end of the transition period`. Answers will be requested by Tuesday, November 17, 2020. The obligations to preserve financial stability, market integrity, investor protection and fair competition, while preserving the parties` autonomy of regulation and decision-making and their ability to make equivalency decisions in their own interests.
This does not affect the ability of the parties to adopt or maintain measures when there are grounds for control. It is essential that the transition period can be extended by a mutual agreement between the EU and the UK. Please note that, in accordance with the agreement, the transitional period can only be extended once until 31 December 2022 and that the United Kingdom and the European Union must make a decision by 1 July 2020 on whether such an extension should be made.