UK's plan to extend Brexit grace period infuriates Irish and EU officials
March 4, 2021, 12:24 pm

UK's plan to extend Brexit grace period infuriates Irish and EU officials

Mairead McGuinness, the EU commissioner for financial services, said the UK had lost single market access ‘because of the form of Brexit they chose’.

Move to extend grade period for trade with Northern Ireland has damaged trust, says EU commissioner

Boris Johnson’s unilateral move to ease the impact of Brexit on Northern Ireland has damaged Brussels’ trust in the government, according to the EU commissioner taking key decisions on access for the City of London to the European market.

The UK was accused of breaking international law for a second time on Wednesday after ministers said they would extend a grace period on a range of checks on trade between Northern Ireland and Great Britain.

The commission responded that under the Brexit withdrawal agreement, the decision should have been agreed with the EU. The claim was denied by Lord Frost, who has recently been given a seat in cabinet and responsibility for EU relations.

The move has infuriated the Irish government and officials in Brussels. The European commission is examining whether to make positive “equivalence” decisions that would allow the UK financial services sector to operate in the UK market.

Brussels has so far granted only limited direct access for the City of London under its system, which is designed to ensure that only firms operating under regulatory systems similar to its own can offer services in the EU.

Mairead McGuinness, a former Irish MEP who is now the EU commissioner for financial services, said it was a damaging episode. “Things like that don’t help build trust,” she said.

McGuinness further noted that Britain’s finance minister, Rishi Sunak, had told the Bank of England on Wednesday to be creative in keeping the City of London competitive after Brexit.

“This is a sensitive area … we need to be clear and have been consistency clear how we will approach this, and we have been very clear with the United Kingdom as well,” she said. “Equally the UK has said, indeed just yesterday, about their intentions, and what those intentions transfer into in terms of real action that may impact on the financial system, we’re not clear yet.

“To repeat the point, equivalence is not about recreating single market access; the UK lost that because of the form of Brexit they chose. Therefore, we will be looking at each particular element where we see an advantage or indeed for us to take action and I dare say the UK will continue in that same vein.”

McGuinness added that there remained gaps in information provided by Britain on its intentions to diverge from EU rules.

Frost, whose leadership of the UK’s negotiating team during the recent trade and security talks was marked by a robust style, was also personally criticised on Thursday by the Irish government for making a “very, very dangerous” unilateral decision.

Ireland’s minister for European affairs, Thomas Byrne, said the peace process in Northern Ireland should not be a victim of the UK’s newly antagonistic approach to the EU.

Bryne said he feared the consequences for continued peace in Northern Ireland if border issues there became embroiled in the difficult relationship between Brussels and London.

Earlier this week, loyalist paramilitary groups told the British and Irish governments that they were withdrawing support for the Good Friday agreement in protest at Northern Ireland’s Irish Sea trade border with the rest of the UK.

“Unilateral actions in the context of Northern Ireland are extremely risky to say the least, possibly illegal and certainly foolhardy,” Byrne said. “Michel Barnier made the point to other member states of the European Union and the peace process was fragile in Northern Ireland. And quite frankly, I would have appreciated some public recognition of that by David Frost”.

“I mean, if Britain wants to have an ongoing battle with the European Union, that’s fine, please, please leave Northern Ireland out of it … there is a peace process there to protect,” Byrne said.

Frost recently won out in a Whitehall power tussle to take over from Michael Gove both as the co-chair of a joint committee implementing the withdrawal agreement and a partnership council relating to the trade and security deal agreed last Christmas Eve.

Simon Coveney, Ireland’s deputy prime minister, said the EU was now considering legal action through the European court of justice.

“The EU are negotiating with a partner they simply can’t trust,” he told RTE’s Morning Ireland programme on Thursday. “That is why the EU is now looking at legal options and legal action which means a much more formalised and rigid negotiation process as opposed to a process of partnership where you try to solve the problems together.”

source: Daniel Boffey

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.