The Gibraltar Deposit Guarantee Scheme (GDGS) has welcomed HM Government of Gibraltar’s (HMG) statement on the jurisdiction’s readiness for an orderly exit from the European Union.
HMG’s EU Withdrawal Act (the Act) repeals the European Communities Act 1972, converting and preserving the acquis communitaire (EU law) into domestic law. This includes all European legislation relating to depositor protection, such as the Deposit Guarantee Scheme Directive and Banking Recovery and Resolution Directive.
The Act also gives Ministers, Gibraltar Financial Services Commission and GDGS powers to address any deficiencies in financial services legislation and regulation resulting from Gibraltar’s exit from the EU.
Following Brexit, the UK and Gibraltar will continue to have access to each other’s markets. The Financial Services and Markets Act 2000 (Gibraltar) Order 2001 (Gibraltar Order) provides for access arrangements through deemed passporting rights. The UK is revising the Gibraltar Order in light of the UK’s exit from the EU and it will provide continued access for Gibraltar firms to the UK market and UK firms to the Gibraltar market.
The arrangements for access by Gibraltar and UK firms as set out in the revised Order will apply until 31 December 2020. In the interim, the UK and Gibraltar will be working together to agree a new long-term relationship for access to each other’s markets.