Italy gives UK finance firms six-month operating extension post-Brexit

ROME: British financial intermediaries can keep on operating in Italy until the end of June as they await authorisation to do business in the country as non-European Union companies, Italy's banking and bourse authorities said on Saturday.

Britain left the EU's orbit on Jan 1. just days after clinching a last-gasp divorce treaty that set rules for industries such as fishing and agriculture but did not cover its much larger finance sector.

As such, British financial firms no longer have direct access to most EU markets.

However, Italy's Consob bourse watchdog said companies that had applied before the end of 2020 for permission to keep operating in the Italian market would be given a six-month extension.

"During such period, operations are limited to activities for which an authorisation is sought and to outstanding contractual relationships," Consob said, adding that

new contracts could not be signed or old agreements modified.

"It is allowed to perform activities in connection with the management of the so-called 'life-cycle event' for derivatives contracts not subject to clearing by a central counterparty."