Bank of England extends passporting rights for EU insurers

European insurers will be able to continue using passporting rights to operate in the UK during the “implementation period” after the UK formally leaves the EU next March.

And the ABI has called on the EU authorities to allow UK insurers the same access. 

The Bank of England said today that financial services firms will be able to carry on doing business “in much the same way as now” after Brexit.

It said the decision is based on the presumption that UK and EU regulation will continue to be closely aligned.

“It would be difficult, ahead of March 2019, for all financial institutions to have completed all of the necessary steps required to mitigate the risks to the provision of financial services in the EU and the UK,” the bank said.

“In light of the agreement at the EU Council, the bank considers it reasonable for firms currently carrying on regulated activities in the UK by means of passporting rights, or the EU framework for central counterparties, to plan that they will be able to continue undertaking these activities during the implementation period in much the same way as now.”

The ABI welcomed the bank’s announcement.

“We are pleased to see the Bank of England take a pragmatic approach to regulation during the implementation period.This provides some much needed peace of mind for customers and firms currently using passporting rights in the UK,,” said Jonathan de Beer, senior adviser to the ABI director general and EU exit coordinator.

“We now hope for a common sense response from counterparts in the European Union.”