On 29 January 2019, the Polish Financial Supervision Authority (“PFSA”) published a general note on Brexit (available here). The communiqué relates to Poland’s financial market and is the first official Brexit-related announcement issued by the PFSA.
Key takeaways are as follows:
- In the event of no deal (hard) Brexit, UK-based businesses currently operating on the Polish financial market will be deemed third-country entities and will no longer be able to carry out business on the freedom of establishment basis or freedom to provide services basis.
- After hard Brexit, financial institutions domiciled in the UK might need to undergo the relevant procedures before the PFSA in order to run their business in Poland (including an obligation to obtain adequate permissions where required).
- Customers of UK-based financial institutions have a right to be informed of the possible impact of the withdrawal of the UK from the EU, the relevant contingency measures taken by those financial institutions, and their statutory and contractual rights in the context of Brexit.
Contract continuity following Brexit
The issue of ensuring contract continuity following a hard Brexit is key to how businesses will be affected, and now appears to be receiving attention from local regulators across the EU. The PFSA note does not explicitly touch upon this issue, but states that there will be further Brexit-related communications.
We will let you know of any further developments.
For more information, please get in touch with a relevant contact person at CMS Cameron McKenna Nabarro Olswang.