On 8 February last year the European Commission issued a notice to stakeholders on the “Withdrawal of the United Kingdom and EU rules in the field of Banking and Payment Services”. The notice stated that, subject to any transitional arrangement that may be contained in a possible withdrawal agreement, as of the withdrawal date the EU rules in the field of payment services in the internal market will no longer apply to the United Kingdom.
It warned that UK entities providing payment services, as well as e-money issuing, will lose the ability to passport; meaning that those entities will no longer be allowed to provide services in the EU on the basis of their current authorisations.
As part of contingency action planning focused on a no-deal scenario, the European Commission issued a further communication on 13 November “Preparing for the withdrawal of the United Kingdom from the European Union”. The Commission repeated the earlier warning and stressed that contingency measures taken by national or EU authorities cannot replace the preparations that each business must take. Where new authorisations are required, regulated entities were reminded of their responsibility to apply in good time.
The Deputy may be interested to know that the referenced firm announced on 13 December that its application for a European banking licence had been approved by the European Central Bank, and that it intends to passport its Lithuanian banking license to other EU jurisdictions.