Brexit: UK financial service sector will no longer have right to sell in Latvia

Latvia's financial regulator, the Financial and Capital Markets Commission (FKTK) has launched a dedicated section on its website to try to help Latvian businesses negotiate the United Kingdom's increasingly chaotic and confusing exit from the European Union.

FKTK points out that "Unless the UK asks for an extension and the remaining 27 EU Member States support it unanimously, on 30 March 2019 at 00.00 Central European Time (30 March at 01.00 Latvian time) the UK will become a third country (or a non-EU country)."

"Brexit is a unique event in the history of the EU, and it is difficult to predict the exact outcome and consequences. However, it is likely that there will be changes in the relationship between the other 27 EU countries and the UK," FKTK says.

Consequently,"UK registered and licensed operators will no longer have the right to provide financial services in the EU Member States on a single passport basis. In order for a UK-based company to continue to offer services in the EU, it must obtain a license from a supervisory authority in an EU Member State," FKTK says.

"Therefore, we draw attention to the fact that as of March 30, 2019, companies registered in the UK will no longer have the right to offer their services to Latvian customers," it adds, with a promise to update its information as and when it becomes available.

Contracts concluded before Brexit date between financial service providers in the UK and Latvia shall continue to be valid. However, after that date, such agreements will no longer be subject to EU law.

"We therefore invite anyone who receives a service from a financial institution established in the UK to contact it in time to find out if it intends to introduce any change to the existing agreement," FKTK advises.

Full details are available in Latvian at FKTK's website which provides numerous links to external documents businesses will need to consult.

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