A “No Deal” Brexit will arise if the Withdrawal Agreement is not ratified before the 30th March 2019. The result being the EU law will cease to apply to and in the UK as of the 30th March 2019.
Financial services firms authorised in a European Economic Area (EEA) country can carry out activities in any other EEA country through a process known as passporting. Passporting allows entities authorised in one member state to deliver services in other member states without requiring authorisation from the local regulator or having a base in that state.
If the UK leaves the EU without a deal in place to maintain some or all of the current passporting arrangements, then passporting rights from and into the UK will cease.
In an attempt to mitigate the effects of such a scenario, the UK government has introduced a Temporary Permissions Regime that will allow EEA firms currently passporting into the UK to continue to do so for 3 years after Brexit while they apply for permission from UK Regulators. To that end, Thomond are working towards seeking full authorisation from the UK Regulator, the FCA. Thomond are in the fortunate position of already having a base in Northern Ireland.
Business placed with our Lloyds providers, will be placed with Lloyds Brussels; an insurance company set up in the EEA to ensure continuity of service and continued access to the market’s underwriting expertise and financial security.
We are also continuing to engage with our UK providers to ensure contingency plans are in place in the event of a “No Deal” Brexit.
Click to read more on Lloyd’s Brexit Plans