Information on Brexit for the financial sector
NB: Following the decisions adopted by the European Council on 22 March and 11 April 2019, reference to the United Kingdom’s withdrawal from the EU on 29 March and 12 April should be read as 31 October 2019, in the absence of a ratified Withdrawal Agreement.
In line with the decision adopted by the European Council on 11 April 2019, should the Withdrawal Agreement be ratified at any stage before 31 October 2019, the withdrawal of the United Kingdom from the EU will take place on the first day of the month following the completion of the ratification procedures. In the event that the United Kingdom has not held elections to the European Parliament and has not ratified the Withdrawal Agreement by 22 May 2019, the extension of the period provided for in Article 50 TEU shall cease to apply on 31 May 2019 – the withdrawal date under these circumstances.
Banco de Portugal is monitoring the process for the United Kingdom's departure from the European Union (Brexit), scheduled for 29 March 2019, and its potential impact on the financial system.
Banco de Portugal set up a working group in February 2017, coordinated by José de Matos, advisor to the Board of Directors. The working group brings together experts from the various departments of the Bank responsible for the areas where the impact of Brexit will probably be felt the most and that participate in international working groups where Brexit-related issues are discussed.
Banco de Portugal has held discussions with the financial sector and, in particular, with the organisations representing its institutions.
On this page, Banco de Portugal shares with financial institutions and the general public a range of relevant information on Brexit, including:
- Information from the European Central Bank (within the scope of the Single Supervisory Mechanism) on the procedures to be adopted for the relocation of banks to the euro area and other supervisory issues in the context of Brexit.
- European Comission's communication of 13 November 2018 "Preparing for the withdrawal of the United Kingdom from the European Union on 30 March 2019: a Contingency Action Plan".
- European Comission's seminar on 15 November 2018: "Brexit Preparedness Seminar on Financial Services - Council Working Party (Article 50 Format)".
- European Comission's communication of 19 November 2018 “Preparing for the withdrawal of the United Kingdom from the European Union on 30 March 2019: Implementing the Commission’s Contingency Action Plan” and the Q & A published in the same day "Questions and Answers: the consequences of the United Kingdom leaving the European Union without a ratified Withdrawal Agreement (no deal Brexit)".
- Information on the convening of a joint technical working group on risk management in the period around 30 March 2019, chaired by the President of the ECB and the Governor of the Bank of England.
- European Commission preparedness notices on the legal repercussions that private parties – including financial service providers – need to consider when the United Kingdom becomes a “third country”.
- Opinions of the European Banking Authority on:
- challenges posed by Brexit, with recommendations to ensure the consistent application of the European legal framework to financial institutions, including those seeking to establish themselves or reinforce their presence in the remaining 27 Member States: Opinion on issues related to the departure of the United Kingdom from the European Union, issued on 12 October 2017;
- the need for adequate preparations by financial institutions for Brexit, including the possible departure of the UK from the EU without a ratified withdrawal agreement: Opinion on preparations for the withdrawal of the United Kingdom from the European Union, issued on 25 June 2018;
- aspects related to the implementation of the Directive on deposit guarantee schemes: Opinion of the European Banking Authority on deposit protection issues stemming from the withdrawal of the United Kingdom from the European Union, issued on 1 March 2018.
- The welcome guide, issued by Banco de Portugal and the Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários), with the procedures for entities managing collective investment undertakings to obtain the authorisation and registration needed for the pursuit of their business in Portugal.