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Clifford Chance

Spain prepares for 'no-deal Brexit'

As of today, a "no-deal Brexit" remains an option. In order to prevent market disruption and negative implications for the financial markets in case of a "no-deal Brexit", the Spanish government has published a Royal Decree-Law (the "Brexit RDL")1 with contingency measures aimed at preserving (i) the interests of Spanish and British citizens who exercised their right to free movement before Brexit Day and (ii) Spanish economic interests.

Briefings

04 March 2019

Spain prepares for 'No-Deal Brexit'

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.
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