Government takes further preparatory measures for the UK’s withdrawal from the EEA single market in investment services and activities

Vaduz (ots) – At its meeting on November 17, 2020, the government approved an amendment to the Banking Ordinance (BO). With this measure, banks or investment firms domiciled in the United Kingdom of Great Britain and Northern Ireland are permitted, even after the United Kingdom has left the EEA internal market, to provide investment services and activities as well as ancillary services in accordance with Annex 2 Sections A and B of the Banking Act (BankG) To provide counterparties or professional customers (such as banks) in Liechtenstein.

This measure is a further step towards cushioning the possible negative effects of the United Kingdom’s exit from the EEA internal market. As a result of this measure, Liechtenstein banks, for example, can continue to obtain certain services from banks or investment firms in the United Kingdom even after January 1.

Banks or investment firms from the United Kingdom must notify the Liechtenstein Financial Market Authority (FMA) of commencement and termination of these activities in Liechtenstein.

This government measure is based on Art. 46 of Regulation (EU) 600/2014 (MiFIR), which applies in Liechtenstein on the basis of the EEA Agreement. According to this provision, the EEA states may allow third country firms to provide investment services or activities together with ancillary services for suitable counterparties or professional clients resident in their territory within the meaning of Annex II Section 1 of the MiFID Directive, in accordance with national regulations, provided (and as long as) the European Commission has not made a corresponding “equivalency decision”.

The regulations adopted today will come into force on December 1, 2020 and will initially apply until December 31, 2022 or until a corresponding equivalence decision comes into force at EEA level.

Press contact:

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Ministry of Presidency and Finance
Markus Biedermann, General Secretary
T +423 236 60 09

Original content from: Principality of Liechtenstein, transmitted by news aktuell
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