The Financial Services (Implementation of Legislation) Bill provides the power to HM Treasury, in the event no deal is agreed between the U.K. and the E.U., to implement and make changes to a category of legislation which the Bill describes as “in-flight”. These are pieces of E.U. financial services legislation that: (1) have been adopted by the E.U., but do not yet apply so cannot be captured by the Withdrawal Act; or (2) are currently in negotiation and may be adopted within two years after exit day.
In March 2019, HM Government negotiated two consecutive extensions to the notice period under Article 50 of the Treaty of European Union, setting a new exit day of 31 October 2019. The FMLC understands that, after the second extension was agreed, the passage of the Bill through Parliament was temporarily suspended. Following the prorogation of Parliament in September 2019, the Bill fell as it had failed to receive Royal Assent in the session in which it was introduced.
The FMLC sent this letter to HM Treasury to express its view that it is essential that the Bill is resuscitated and passed so as to ensure continuity and certainty for the financial services industry. The letter draws attention to certain clauses which may have to be updated to account for the extension to the Article 50 notice period and reiterates other concerns which the Committee had raised in its letter to HM Treasury of 3 January 2019.
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