No guarantees on continuity of UK pension and life insurances contracts after Brexit

EC Vice-President Waldis Dombrovskis told Maltese MEP Alfred Sant that he would be hesitant to give him guarantees that – irrespective of the outcome of Brexit negotiations – all EU citizens who hold private insurance and pension contracts in force with UK firms their contractual arrangements will continue to be legally safeguarded and will remain in full enjoyment of entitlements for which they have paid and are still paying. Mr Dombrovskis said negotiations are ongoing, there are still questions and Supervisors and regulators are currently assessing the continuity of contracts.
“We are certainly working to minimise disruption but we know that in terms of negotiations, they are not finished yet and there are still questions open.”
Dr Sant told Mr Dombrovskis that the continuity of contracts has emerged as a major Brexit issue because existing agreements are structured to rely on firms’ authorizations to do business across the EU Member States. Once the UK leaves, those permissions will likely fall away, leaving firms unable to service cross-border contracts.
The Maltese MEP intervened during an exchange of views with EC Vice-President during a meeting of the European Parliament’s Committee on Economic and Monetary Affairs (ECON) which discussed financial stability in Europe. Dr Sant also spoke on developments of Crypto-currencies in the EU, the prospects for small and medium enterprises to find investment funds.

RECENT DEVELOPMENTS OF CRYPTO-CURRENCIES
Alfred Sant noted there is still a lot of scepticism within the EU about crypto-currencies, with more focus being placed on the risks than the opportunities.
The Maltese MEP said certain derivatives contracts do not look less risky or complex from the retail investor perspective. The services sector can still benefit from opportunities arising in crypto-currencies exchanges.
“From a positive point of view, what are the advantages at EU level of crypto currency advances in financial markets? How do you assess the current developments in certain Member States on this matter?” the Maltese MEP asked Mr Dombrovskis.
Mr Dombrovskis said the ECB stressed that the Euro is the only one currency in the EU. Crypto-currencies, he said, is a new promising development, but argued there are associated risks of losing investments in crypto-currencies.
“We also need to be aware of the risks; this is why the European Supervisory Authorities updated warning messages on crypto-currencies.” said Mr Dombrovskis, adding that Crypto-currencies have to be subject to anti money laundering rules.

SMEs
The Maltese MEP said Europe is producing only half the SME IPOs (Small and Medium Enterprises listings on public markets) that it generated before the financial crisis. Due to their structure and business culture, the access to finance of SMEs especially in Southern Europe, is still very much linked to traditional bank lending.
The Commission in several studies and papers has stressed that more should be done to support SME listings on public markets.
“What type of measures is the Commission is thinking of and what, if anything, could be concluded by the end of this legislative mandate?” asked Dr Sant.
Mr Dombrovskis replied that on 23rd of May, the Commission will publish proposals to facilitate SME’s IPOs and to reduce barriers.

You may view Dr Sant’s and Mr Dombrovskis comments on this link:

L-EBDA GARANZIJA DWAR KONTINWITA’ DWAR PENSJONIJIET U INSURANCES WARA L-BREXIT

Il-Viċi President tal-Kummissjoni Ewropea Waldis Dombrovskis qal lil Alfred Sant li ma setax jagħtih garanziji li – irrispettivament mir-riżultati tan-negozjati dwar il-Brexit – iċ-ċittadini tal-UE b’insurance privata u b’kuntratti ta’ pensjoni ma’ kumpanniji Brittaniċi jkunu mħarsa u li jibqgħu jgawdu l-intitolameti ta’ dak li ħallsu u dak li qegħdin iħallsu.
Dombrovskis qal li n-negozjati għadhom għaddejjin, baqa’ mistoqsijiet u r-regolaturi qeghdin janalizzaw il-kontinwita’ tal-kuntratti.
“Ċertament qegħdin naħdmu biex nimminizzaw interruzzjonijiet, imma n-negozjati għadhom ma ntemmux u għad baqa’ mistoqsijiet x’jiġu imwieġba.” qal Dombrovskis.
Dr Sant qal lil Dombrovskis li l-kontinwita’ tal-kuntratti saret ‘issue’ ewlenija tal-Brexit għaliex il-ftehimiet eżistenti huma strutturati li jagħtu l-awtorizzazzjoni tal-kumpanniji li joperaw in-negozji fl-istati membri tal-UE.
L-MEP Malti għamel dan l-intervent waqt bdil ta’ ideat mal-Viċi President tal-KE f’laqgħa tal-Kumitat Ekonomiku u Monetarju tal-Parlament Ewropew (ECON) li iddiskuta l-istabbilita’ finanzjarja fl-Ewropa. Dr Sant tkellem ukoll dwar l-iżviluppi fil-‘Crypto-currencies’ fl-UE u l-prospetti għal fondi ta’ investiment għal intrapriżi żgħar u medji.

L-AĦĦAR ŻVILUPPI FIL-‘CRYPTO-CURRENCIES’
Alfred Sant qal li għad hemm xettiċiżmu fl-UE dwar il-‘crypto-currencies’, bl-enfasi tkun aktar fuq ir-riskji milli fuq l-opportuntajiet.
Dr Sant qal li ċerti kuntratti huma anqas riskjużi jew kumplessi mill-perspettiva tal-investiment bl-imnut. Is-settur tas-servizzi jista’ jgawdi wkoll mill-opportunitajiet tal-bdil tal-‘crypto-currencies’.
“Mill-aspett posittiv, xinhuma l-vantaġġi fuq livell tal-UE għall-avvanzi tal-‘crypto-currency’ fis-swieq finanzjarji? Kif tanalizza l-iżviluppi f’ċerti stati membri f’dal-qasam?” Alfred Sant staqsa lil Dombrovskis.
Dombrovskis qal li l-Bank Ċentrali Ewropew jenfasizza li l-Ewro hija l-unika munita fl-UE. ‘Crypto-Currency’ hija żvilupp promettenti, imma qal li hemm riskji assoċċjati f’telf ta’ investiment bil-‘crypto-currencies’
“Irridu nkunu konxji mir-riskji, għalhekk l-Awtoritajiet Ewropej ta’ Superviżjoni qed joħorġu messaġġi ta’ twissija dwar il-‘crypto-currencies. Dawn iridu jkunu suġġetti għar-regoli ta’ kontra l-ħasil ta’ flus.” qal Dombrovskis..

SMEs
Alfred Sant qal li l-Ewropa qed tipproduċi nofs l-intrapriżi żgħar u medji li kienet tiġġenera qabel il-kriżi finanzjarja tat-2008. Minħabba l-istruttura u kultura tan-negozju, l-intrapriżi ż-żgħar u medjia fl-Ewropa ta’ Isfel, għadhom marbutin mas-self tradizzjonali tal-banek.
Il-KE enfasizzat li jrid isir iżjed biex l-SMEs ikollhom l-appoġġ tas-swieq pubbliċi.
“X’tip ta’ miżuri qed taħseb il-KE li tieħu sa tmiem din il-leġislatura?” staqsa Dr Sant.
Dombrovskis wieġeb li fit-23 ta’ Mejju, il-KE se tippubblika l-proposti tagħha biex tiffaċilita l-operazzjoni tal-SME’s fis-swieq pubbliċi.

Tista’ ssegwi l-interventi ta’ Dr Sant’s and Dombrovskis comments f’din il-link: