Financial services and social security measures to be applied in the event of Brexit

Decree-Law n.º 147/2019, of 30 September 2019, approves the measures to be applied in the event the United Kingdom leaving the European Union, without agreement, regarding financial services and social security matters.

In the absence of an agreement, investment companies and entities managing collective investment undertakings headquartered in the United Kingdom will no longer, upon withdrawal from the European Union, be able to benefit from the European regime that grants them freedom to provide services to investors in other Member States, as they will be covered by the regime applicable to entities headquartered in third countries.

To the extent that the Brexit will result in an immediate cessation of the services provided by these entities to investors in Portugal, this law approves transitional measures with regards to financial services, allowing credit institutions, investment firms and entities managing collective investment undertakings headquartered in the United Kingdom, which on the date of exit from the European Union are authorised to provide investment services and activities, to continue, provisionally, to do so in Portugal, with the necessary time to terminate the current contracts and associated investments.

In addition, the Decree-Law approves contingency measures for contracts relating to the receipt of deposits or other repayable funds and other credit operations, thus ensuring the continuity of the provision of services to banking customers.

On the other hand, the law approves social security measures relating to access to social benefits and pensions. Thus, for this purpose, the periods from the Brexit to 31 December 2020 shall be dully accounted for.

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