The budding economic crises in a number of emerging countries, like Turkey and Argentina, illustrate that a sudden tightening of financial conditions constitutes one of the major risks to financial stability. Financial conditions in the developed countries have remained accommodative to...Read more
The Dutch government does not see a need at this stage to grant a (temporary) exemption for UK-based investment firms to provide investment services in the Netherlands after 2020. This was announced in a letter (in Dutch) to the House of Representatives on 21 August 2020. The European Commission also published a communication stating that it will not adopt an equivalence decision in this area in the coming period.
This means that UK service providers - if they do not take additional contingency measures - will no longer be able to provide many of their services to Dutch professional clients after 2020. This applies, for example, to investment services in relation to outstanding uncleared OTC derivative contracts.
In view of these developments, it is important for Dutch financial institutions – in case they have not yet done so - to engage in a timely manner with their UK investment service providers to prevent disruptions to these services as of 1 January 2021. In this respect it is important to verify that UK investment service providers have the appropriate licences to continue to be able to provide services to Dutch professional clients in 2021, for example by transferring (derivative) contracts to EU entities of UK service providers.