From June 1, 2016, certain UK financial institutions (defined below) and members of their global group will be restricted from entering into, or materially amending, ‘financial arrangements’ governed by the laws of a ‘third country’ (being a country that is not an EU Member State) unless their counterparties enable them to meet a new, UK-specific, “stay recognition requirement”. The finalised stay recognition requirement will be contained in a new ‘Stay in Resolution’ Part of the PRA Rulebook.
We have just published a new online briefing note concerning stay recognition requirements for third country law financial arrangements. The briefing can be found here.