The UK enters an 11-month transition period as it withdraws from the EU

Following the UK’s withdrawal from the EU  on the 31 January 2020, it has now entered an 11-month transition period from 1 February until 31 December this year.

Do you have to make any changes to your current EMIR and MiFIR reporting?

According to the terms of the Withdrawal Agreement, the EU law continues to apply in the UK during the transition period and hence there is no change to the current reporting obligations until at least the end of the transition period (i.e. 31 December 2020).  For now, no actions are required from investment firms.

TRAction will continue to operate under the existing EMIR and MiFIR laws, Trade Repositories (TRs) and Approved Reporting Mechanisms (ARMs) until the end of 2020.

What will happen if there is no deal agreed by 31 December 2020?

On 1 January 2021, whether there is a deal or not, the UK will leave all the institutions and structures of the EU, such as EU judicial structures including the European court of justice, EU security and defence arrangements and agreements such as data sharing.

Since the UK and EU are just starting to negotiate a deal, it remains uncertain if there will be a deal until later of this year. Hence, what will be the impacts on EMIR and MiFIR Reporting? No one knows.

In either case, we anticipate that clients domiciled in the EU will need to report to EU-based (as it will then be constituted) TRs and ARMs.  Investment Managers and firms in the UK will need to continue to submit reports in the current format, but likely to UK-based TRs and ARMs, until such a time any changes are made by the FCA to EMIR and MiFIR to create a divergence from the current EU directives and regulations.

We will keep you updated when new information becomes available.

If you have any questions, please contact us.

Angela Yang

Angela works in our Sydney office. At TRAction, she provides regulatory support to our clients, monitors changes in the worldwide regulatory environment relating to trade and transaction reporting, assists with business development and client onboarding as well as development of PR and marketing strategies. Angela has several years of experience working in legal and compliance for financial services companies. She previously practiced in a leading boutique financial services law firm in Sydney as a solicitor with a focus on licensing, compliance, AML/CTF and M&A. Angela has a double degree in Actuarial Studies and Law from the Australian National University and is admitted as a solicitor in Australia.