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  • NBS press release

BREXIT – The implications for the Slovak financial market of the United Kingdom’s withdrawal from the European Union

2 Apr 2019

Národná banka Slovenska (NBS) is paying close attention to the situation in financial markets in relation to the United Kingdom’s withdrawal from the European Union (Brexit).

We point out to all financial market participants which are incorporated in the UK and operate in Slovakia on the basis of the freedom of establishment (under an ‘establishment’ or ‘branch’ passport) or the freedom to provide services (under a ‘services’ passport) that they will not be authorised to operate in Slovakia beyond the current withdrawal date unless the UK’s EU Withdrawal Agreement is approved or the withdrawal date is extended. Following Brexit, all primary and secondary EU legislation will cease to apply to the UK.

In the event of a no-deal (‘hard’) Brexit, financial market participants may not operate in Slovakia under a licence issued by the UK unless they are established in Slovakia as a branch of a foreign institution or as a subsidiary, or unless they are established as a subsidiary in another EU Member State and notify authorities in Slovakia in accordance with the single licence principle.

The UK’s supervisory authority has published on its website information about a ‘temporary permissions regime‘ for financial market participants that provide services in the UK under the freedom to provide services.

Regarding the possibility of a no-deal Brexit, NBS is proceeding in accordance with the recommendations of the European Supervisory Authorities – the European Insurance and Occupational Pensions Authority (EIOPA), the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) – in order to ensure the uninterrupted provision of services in the Slovak financial market.

National Bank of Slovakia
Communications Section
Imricha Karvasa 1, 813 25 Bratislava, Slovak Republic
Tel.: +421-2-5787 2142, +421-2-5865 2142, +421-2-5787 2169, +421-2-5865 2169
Internet: http://www.nbs.sk

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