Luxembourg's financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), has issued a statement regarding the UK's departure from the EU.
Following the formal adoption of the withdrawal agreement by both the European Parliament and the Council of the European Union on Thursday, the UK will be leaving the EU with a withdrawal agreement at midnight (Brussels time) tonight. According to the terms of the withdrawal agreement, a transition period will last until 31 December 2020, during which time EU laws and regulations shall continue to apply in the UK and UK entities can continue to work in Luxembourg on the basis of their passporting rights.
According to the CSSF, the scenario of a hard Brexit is therefore no longer relevant. As such, the CSSF’s individual decisions granting the twelve-month transitional regime to UK entities and all notifications made in that context through the dedicated eDesk portals are lapsing. The dedicated e-Desk portals are closed with immediate effect.
The CSSF has stressed that notwithstanding the current political developments, impacted entities should continue to take all necessary steps to prepare and anticipate the end of the transition period. Continued progress should also be made on contingency planning, notably to ensure that customers and investors are adequately informed of any steps taken in order to mitigate potential “cliff-edge” issues after the end of the transition period.
The CSSF concluded that it shall continue to communicate on Brexit-related issues in the course of the transition period as necessary.