With 7 weeks to go until Brexit (unless an extension is agreed by the EU and UK to the Article 50 notice), a no-deal Brexit remains a possibility. The Irish Government is moving ahead with the legislation necessary to mitigate the immediate effects of a no-deal Brexit in the areas of insurance, settlement, healthcare, enterprise, energy, education, tax, transport, employment, social protection, extradition and immigration.
Context - European Commission Contingency Action Plan
This follows on from the implementation by the European Commission, in December 2018, of various legislative proposals signposted in its Brexit Contingency Action Plan. At the same time, the Commission signalled to the EU 27 Member States that they should be taking action in the areas of citizens' rights, and social security.
From a financial services perspective, the Commission felt that a limited number of measures required adoption to cater for a potential 'no deal' Brexit as follows:
a temporary equivalence decision whereby ESMA can recognise UK-based central counterparties, allowing them to continue providing services in the EU for 12 months following a no-deal Brexit; a temporary equivalence decision whereby UK central securities depositaries (CSDs) will be allowed to provide certain services to operators in the EU for 24 months following a no-deal Brexit; a delegated regulation extending the date of deferred application of the clearing obligation for certain over-the-counter derivative contracts for 12 months in relation to contracts that are novated for the sole purpose of replacing a UK counterparty with an EU27 counterparty; and a delegated regulation allowing contracts with a UK counterparty currently subject to risk management procedures under the European Market Infrastructure Regulation to be novated for a fixed period of 12 months, if the sole purpose of the novation is to replace the UK counterparty with an EU27 counterparty to ensure that those novations are not now subject to margining requirements that would not have applied when they were originally entered into. Temporary measures were also adopted by the Commission in respect of UK nationals residing in the EU, air transport, road haulage, customs/exports, climate policy, and the PEACE IV and United Kingdom-Ireland programmes.
Irish Government's Contingency Action Plan
The Irish Government published its Contingency Action Plan for a no-deal Brexit in December 2018, confirming that all...