FIS and BrexitSince the announcement of the Brexit referendum results in 2016, FIS’ experts have been closely monitoring the progress of the negotiations, possible terms of the separation, as well as the timing and potential impacts.
FIS Brexit Taskforce
Immediately following the 2016 referendum, FIS mobilized a Brexit taskforce comprised of senior executives and subject matter experts. The objective of the taskforce was, and continues to be, monitoring the Brexit negotiations, the finalisation of any post-Brexit positions and the ongoing impact on FIS of the United Kingdom being outside of the European single market and European Union customs union; and identifying and managing any risks to FIS and our service to clients. On 24 December 2020, the UK and the EU announced they had agreed a post-Brexit "EU-UK Trade and Cooperation Agreement”. On 1 January 2021, the transition period ended, and the UK left the EU Single Market and the Customs Union.
Our key focus areas include:
Financial services in the EU are not governed by a single set of regulations, and it is therefore not possible for the EU to issue one equivalence decision that would maintain the parties’ current level of market access. Coming under an EU equivalence regime is very different to benefiting from passporting rights; the existing equivalence regimes under EU law differ significantly in their scope, operation and impact. We will continue to monitor this situation closely.
For our impacted regulated businesses, we have embarked on the implementation of alternative arrangements, such as authorisation from the required regulatory authorities or provision of service from another legal entity under an exemption or authorisation or reliance on third-country equivalence regimes.
For our business units providing services to clients not requiring regulatory authorization, we believe there is no such regulatory impact.
However, the EU-UK Agreement offers some respite on this point. Data transfers to the UK from the EU and EEA are not to be treated as made to a third country. This position lasts until an adequacy decision is granted or (if earlier) until 1 May 2021. If no adequacy decision has been issued by that date, then there is a further automatic extension, until 1 July 2021, unless either party objects to that.
The UK government has confirmed that it will permit transfers to the EEA and also that it will recognise the existing adequacy decisions taken by the EU in respect of other third countries. Data transfers from the UK to the EEA and other non-EEA countries with adequacy decisions will be largely unaffected.
Trade in Goods
Commitment to Excellent Service and Keeping You Informed
FIS is dedicated to maintaining excellent, consistent service to our clients always, and especially during any period of change triggered by Brexit. We are also committed to keeping you informed as details change.