On Thursday 11 April 2019 the European Council decided, in agreement with the UK, to further extend the period provided for in Article 50(3) of the Treaty on European Union until 31 October 2019. This extension will cease to apply on 31 May 2019 in the event that the UK has not held elections to the European Parliament and not ratified the Withdrawal Agreement by 22 May 2019.
In preparation for circumstances where a withdrawal agreement is not agreed between the EU and UK, the Bank of England (Bank) and Prudential Regulation Authority (PRA) have published final policy materials including EU Exit Instruments, Supervisory Statements (SSs) and a Statement of Policy (SoP). These generally have the effective date of ‘exit day’, which is defined in the European Union (Withdrawal) Act 2018 to mean 31 October 2019 at 11pm.
These materials were published as ‘near-final’ in Section B of PS5/19 ‘The Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018’ on 28 February 2019.
The instruments and statements are set out in Section B of the 18 April 2019 version of PS5/19. We have not changed the policy or significantly altered the text of the published materials since their publication as ‘near-final’. We have published these materials to give firms and other industry participants early sight to assist their planning in the event of the UK leaving the EU with no implementation period in place.
We are not publishing final versions of the Bank and PRA transitional directions and transitional guidance materials that were published as ‘near-final’ in Section A of the 28 February 2019 version of PS5/19. In light of the extension, the Bank and PRA will consider whether to make any changes to these directions and guidance materials. We will publish further information on this in due course. For further information, see Section A of the 28 February 2019 version of PS5/19.
The instruments and statements are relevant to all firms authorised and regulated by the PRA, financial market infrastructure providers (FMIs) that are currently supervised by the Bank and firms subject to the Bank’s powers as resolution authority. Some of the changes are also relevant to firms authorised and regulated by the Financial Conduct Authority (FCA), and to the Financial Services Compensation Scheme (FSCS). The instruments and statements may also be relevant to firms that might seek to apply to the PRA or FCA for authorisation, and to FMIs that might apply to the Bank for recognition.
The Bank and/or PRA may issue further statements in relation to this topic, including in relation to any EU materials issued after 18 April 2019.
Note: For materials included in the Section A Appendices of the 28 February 2019 version of PS5/19, see ‘Transitioning to post-exit rules and standards page as at 16 April 2019’ .