Yes! According to the “Comisión Nacional de Mercado y Valores” Spain is the best option for business considering a move from the United Kingdom after Brexit.
As the 31st of October approaches, the UK is faced with the decision of leaving the EU. This decision alone, implies disruption to the thousands of investment firms and other financial institutions based there. Not being able to operate under the EU passport system, has got many wondering What next?
One thing is Clear. Adaptation to the new environment is necessary, and it might involve many changes including that of relocation.In context of Brexit, the CNMV is determined to make Spain the most appealing option for those considering a move from the United Kingdom.
Committed to its goal, the CNMV will implement a special program. This program is designed to create a supervisory environment to guide newcomers through the procedural needs of relocation in Spain.
How can This CNMV program help you?
Here are some of the key actions the CNMV plans on implementing:
1. WELCOME PROGRAM
- They will create a program dedicated to aiding and guiding investment and management firms based in the UK. This includes:
- Creation of a single point contact for applicants
- Provide English speaking coaches to help them understand the regulations and laws. Coaches are to guide the companies through the process and continue helping 6 periods after the authorization has been granted
- English Documentation will be accepted and there is no need for translations.
2. STRAIGHT FORWARD AUTHORIZATION PROCESS
- The CNMV has created its own simplified process designed to help guide those ready for transitioning:
- Standardized application Forms: Available in English and digital
- Electronic submission of documents: electronic submission with electronic signature
- An established Fast Track pre- authorization period: To create assurance there is a set two-week period to allow organization to plan ahead upon their move to establish in Spain.
- Full authorization within two months: CNMV undertakes delivering authorization in a specific time period after pre- authorization.
- CNMV will accept Pre-Existing documents in English: No need for translation.
3. ADVANCED INTERNAL MODEL CAPABILITIES
- The CNMV confirms it will be able to efficiently approve internal models for determination of capital needs to cover counterpart and market risks.
- Continuing the growing trend of using Such models to reinforce its own resources and establish cooperation scheme with the Bank of Spain. This relationship and use of models would therefor ensure relevant tasks can be carried out with ease.
4. OUTSOURCING FUNCTIONS
- CNMV will provided the outsourcing scheme that complies with the MiFID requirements:
- Outsourcing firm must retain responsibility
- Must establish reasonable controls over outsourced functions
- All the information should be accessible to the CNMV as a supervisor.
5. NO ADDITIONAL REQUIREMENTS BEYOND UE
- There will be no additional requirements apart from those derived from European Union legislation
- Such areas include:
- Transparency and client access rules for systematic internationalist.
- Access to market maker condition under Short Selling Regulation.
- Recovery and resolution regime
- Remuneration policies.
Do you require assistance with the preparation of your business for the consequences of Brexit? It would be our pleasure to assist you. Contact us and get a free consultation!