2017 Key Highlights And 2018 Continued Agenda

Brexit

2017 saw many initiatives being taken at national and European level to counter the potential impact of Brexit. We review some of the actions driving the current Brexit contingency plans.

ESMA Initiatives

Supervisory convergence opinion: 31 May 2017

Many UK market participants are likely to relocate entities, activities or functions to EU Member States in a short time period in order to maintain access to EU financial markets. It is important that supervisory and regulatory arbitrage risks are avoided.

ESMA (European Securities and Markets Authority) believes a consistent supervisory approach among National Competent Authorities is vital, a concept known as 'supervisory convergence'. ESMA's opinion provides helpful guidance and general principles on this and is seen as a practical tool in achieving supervisory convergence. For example, it adopts the principle that UK authorisations should not be automatically recognised. It also believes that the