Finance and Capital Markets | Temporary ‘Brexit’ MiFID regime extended to 1 October 2023

On 14 February 2023, the Norwegian Ministry of Finance announced that the temporary permissions regime for UK investment firms to provide cross-border MiFID services to per-ser professional clients in Norway will be further extended until 1 October 2023. Moreover, a proposal for a permanent regime is expected to be published around 1 April 2023.

Background

As a result of the UK’s decision to leave the European Union (‘Brexit’), the Norwegian Ministry of Finance in 2018 decided to adopt a temporary regulation (the “Temporary Regulation”) which allowed UK investment firms to continue providing investment services and activities to per-se professional clients and eligible counterparties in Norway. The Temporary Regulation was later amended to clarify that UK branches of EEA-licensed investment firms are also in scope of the temporary permissions regime. Currently, any UK firm or UK branch of an EEA firm (as applicable) was authorised to provide cross-border investment services into Norway as of 31 December 2020 may avail of the Temporary Regulation, which was set to expire on 1 April this year.

Further extension and potential permanent regime

The Ministry of Finance has now extended the duration of the Temporary Regulation until 1 October 2023 and has further appointed the Norwegian Financial Supervisory Authority to evaluate whether a permanent legal framework for investment services from firms outside the EEA to professional clients and eligible counterparties in Norway should be introduced. The Norwegian FSA has been asked submit its evaluation by 1 April 2023, after which a public hearing will likely be held.

UK firms in scope of the Temporary Regulation should pay close attention to the outcome of the FSA’s evaluation and the related public hearing. BAHR’s financial regulatory team are ready to answer any questions and provide assistance in relation thereto. Contact details below.