Transitional solution for continued access to investment services following Brexit
Today the Government will present a bill to the Riksdag to make it possible to exempt companies from the United Kingdom for a limited time from the requirement to hold a licence from Finansinspektionen (the Swedish Financial Supervisory Authority) to provide investment services.
“This proposal makes it possible to flexibly introduce transitional arrangements for investment services requiring a licence that are conducted in Sweden by companies in the UK,” says Minister for Financial Markets Per Bolund.
At present, a need has been identified, during a transitional period following the UK’s withdrawal from the EU, to allow companies domiciled in the UK to continue providing services to professional clients with whom they entered into agreements prior to Brexit. The aim of the exemption is to eliminate the risk of interrupted access to the necessary financial services to handle derivative contracts entered into by Swedish businesses with a counterpart in the UK.
The proposal will only be relevant if the UK leaves the EU without an agreement in place on transitional arrangements between the parties – a ‘hard Brexit’.