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Gibraltar Left In Limbo

Both the UK and Gibraltar Governments have released a joint statement regarding the third meeting of the Joint Ministerial Council on Brexit. 

The Government of Gibraltar and HM Treasury agreed to continue to work closely together on financial services, committing to a programme of work on insurance.

Basically they agreed that the two governments will put in place a mechanism for ensuring that Gibraltar is consulted on the Free Trade Agreements the UK plans to negotiate outside the EU. This will build upon the existing mechanisms by which Gibraltar is currently consulted on a treaty-by-treaty basis when it comes to international treaties.

There needs to be a seamless transition from EU single market access to bilateral UK/Gibraltar market access.

Ian Youngman, author of Brexit and Insurance says "The deal is to keep Gibraltar in the loop but there is no guarantee that the UK will be able to allow Gibraltar insurers access to the EU market- as they do not control this- nor even that Gibraltar insurers will be allowed to offer policies in England. The first scenario is unlikely but the second is probable, although how attractive the UK market is once you take out Irish business is debatable.Personally if had an insurer in Gibraltar I  would move it into either the UK or into Europe- but whether Gibraltar insurers would pass muster for the FSA or EU regulators is questionable if you look at the history of insurer collapses."

 

 

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