Key takeaways:

•The UK and the EU have reached an agreement in principle on a transition period for the UK’s exit from the EU. Under the draft agreement, the transition period will commence on 29 March 2019 and end on 31 December 2020.
•The draft agreement is subject to endorsement by the EU Council at its summit on 23 March 2018 and will not be legally binding until the entire Brexit deal is agreed and ratified by the EU.
•The UK will remain subject to EU law during the transition period. This means that UK-based investment firms would continue to benefit from passporting rights until the end of the transition period. During the transition period, the UK may negotiate and sign trade deals with third countries, provided that they do not come into effect until after 31 December 2020.