HM Treasury has announced that it will create a temporary authorisation regime that will allow data reporting service providers in the European Economic Area that are authorised in accordance with the European Union's Markets in Financial Instruments Directive to perform their services in the UK after Brexit if no deal is struck.

To do this, the Treasury has drafted up a statutory instrument which, when passed, will make amendments to retained EU law related to markets in financial instruments, to be laid under the European Union (Withdrawal) Act 2018.

At the moment, MiFID II allows any DRSP that has been established and authorised in accordance with its terms in an EEA country to provide data reporting services in the UK. The new piece of secondary legislation will take effect for a limited period after the UK leaves the EU, assuming that no period of transition or 'implementation' will start at the end of March next year.