Greek Parliament approves Brexit interim relief measures
A bill providing inter alia interim relief measures for UK financial institutions in case of a ‘hard Brexit’ has just been approved by the Greek parliament.
The new law provides that certain types of UK financial institutions, including investment firms, banks, insurers, re-insurers and fund managers, may continue performing their existing business towards existing clients in Greece until 31.12.2020, even if no agreement is in place by the expected Brexit date of 31.1.2020 (to be noted, such possibility appears not very likely following recent developments at the UK).
Our firm participated in the public consultation of the draft bill which took place two months ago. Following review of the comments submitted by Souriadakis Tsibris, the Ministry of Finance decided to add UK fund management companies to the scope of the interim relief measures. As a result, UK fund managers will belong in the group of financial services providers who will enjoy temporary relief, despite them not being included in the original wording.
Regarding the content of the new law, one should not fail to stress that it creates an obligation of all UK firms falling within the scope of the temporary relief measures, to inform their Greek clients, either in person or via mass media, as well as to notify the supervisory authority, as to the regulatory status of their cross-border services after the Brexit date. The precise extent, as well as content, of this obligation may require some further interpretation or guidance by regulatory authorities.