We are currently in a moment of uncertainty in regards to the ongoing negotiations on Brexit between the European Union and the United Kingdom.
As we all know, among the members of the European Union there is a right to the free provision of services, and to cease to hold this condition automatically entails the loss of the benefit of the European passport. Therefore, in the event that there is a Brexit without an agreement, British entities will have to adapt to the regime provided for in the different legislations, applicable to entities from third countries in order to be able to continue providing financial services in the different countries.
In PayXpert we are permanently monitoring the actions of European regulators in relation to the countries where we are directly or indirectly present as payment entities licensed in the UK. We can tell you that the regulators have been communicating the actions to be carried out by British entities in order to continue operating.
In April, the Bank of Spain issued an informative note in which it communicated the validity of the contracts entered into prior to the United Kingdom’s exit from the European Union, provided that a new authorization must be obtained in order to manage these contracts and thus guarantee their continuity for 9 months.
This situation is regulated in Royal Decree-Law 5/2019 on contingency measures in case of the withdrawal of the United Kingdom from the European Union without the agreement provided for in Article 50 TEU having been reached.
The Banca d’Italia, for its part, issued a communication in June stating that United Kingdom entities operating in Italy will have to communicate their intention to continue offering services within 3 days of Brexit becoming effective; and that they may be maintained for a period of 6 months as long as they do not have a licence granted by a member state of the European Union.
This issue is regulated by Decree-Legge 25 March 2019, n. 22, and this link contains a table summarising the provisions of the regulation with regard to the steps to be taken in the event of Brexit failing to reach an agreement.
We would like to take this opportunity to inform you that we are in a process of growth, reaching agreements with first line third parties, hiring the best professionals, and now also in the process of obtaining the Banking license in Spain as a payment institution. If you want to know about us, do not hesitate to contact us, we can surely give you a hand.
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