The Finnish Government’s proposal for a transitional permissions regime and a third country firm licence was approved by the Parliament’s commerce committee on Tuesday. This means that UK firms are one step closer to being able to continue the provision of services post-Brexit.
The regime would enable UK credit institutions and investment firms to continue providing investment services and ancillary services into Finland post-Brexit. The transitional arrangements would apply to UK credit institutions and investment firms who currently have passported their home state licenses to provide investment services and ancillary services into Finland. In order to benefit from the transitional arrangements, a UK firm must apply to the Finnish Financial Services Authority (“Fin-FSA”) for a permanent third country licence before Brexit becomes effective. In order to be eligible for a third country licence, the third country firm must meet certain organisational and supervisory criteria that closely resemble branch requirements under Article 39 of MiFID II.
UK firms that do not apply to the Fin-FSA before Brexit for a third country licence will not be able to benefit from the transitional arrangements.
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