The UK left the EU on 31 January 2020 with a Withdrawal Agreement and entered a transition period that ended on 31 December 2020. On 24 December 2020, the UK and the EU agreed on the terms of the UK-EU Trade and Cooperation Agreement (the "TCA"). The UK has approved the agreement and it came into effect provisionally at 11pm on 31 December 2020, pending the EU taking the necessary steps to fully approve it. It provides for tariff free trade in goods, but to the dismay of many commentators, it does not cover the provision of services. As a result, passporting, which allowed firms authorised in European Economic Area ("EEA") states to conduct business in other EEA states based on their "home" member state authorisation, ended with the close of the transition period at 11pm on 31 December 2020.
This affects firms and funds based in the UK that provide financial services in the EEA, and EEA firms and funds that provide financial services in the UK.
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