The United Kingdom has officially withdrawn its European Union membership on the 31 of January 2020. The terms of the withdrawal agreement stipulate that EU law will continue to apply to the UK, as if it was still a Member State, during the transition period from 1 February 2020 to 31 December 2020. However, UK representatives will no longer be permitted to participate in the EU institutions, agencies, or other bodies, and their governance structures, except where exceptionally justified.

This means that - and entities interacting with UK counterparties should note that - rights and obligations for UK entities under EU law will continue to apply during the transition period, including to, inter alia, the reporting obligations emanating from MiFID II/MiFIR, EMIR, CSDR, AIMFD and MMFR.

Additionally, the European Securities and Markets Authority (ESMA) will continue to directly supervise registered credit rating agencies, trade repositories and securitisation repositories established in the UK during the transition period.

A copy of the MFSA’s circular can be obtained by clicking here.