Clifford Chance
Spain prepares for 'No-Deal Brexit'
4 March 2019
Key issues
- Contracts for the provision of banking, securities, insurance or other financial services entered into in Spain by UK regulated entities before Brexit will remain in force following a "no-deal Brexit".
- UK entities must obtain a new authorisation under the relevant third-country authorisation regime to amend existing contracts or to enter into new ones.
- Existing licences will remain in force in relation to the activities linked to the servicing of the existing contracts which require authorisation for a period of nine months in order to enable the termination or assignment of existing contracts or the application for a new third-country authorisation.
- Contracts entered into after Brexit Day are out of scope, so UK entities will not be allowed to enter into new contracts thereafter until (and if) a new third-country authorisation is obtained.
- The transitional measures will enter into force on Brexit Day, unless a withdrawal agreement between the EU and the UK enters into force before such date.
