The Association for Financial Markets in Europe (AFME) and UK Finance have published a paper addressed to policy makers that examines the impact of Brexit on cross-border financial services contracts.
The report highlights a range of actions that are potentially available to address cross-border contractual uncertainty in the absence of EU “passporting” rights. Actions include having a transitional period in place that confirms the legal right to contract in a certain way for a defined period. In addition, existing contracts, subject to certain limitations or conditions, should be allowed to run to maturity. Also, the UK, and individual EU member states, could consider grandfathering contracts under their existing national licensing regimes where appropriate.