On 23 December 2020, the Portuguese Government enacted Decree-Law no. 106-/2020, approving the transitional regime applicable to the provision of financial services by United Kingdom based entities. The regime enters into force on 1 January 2021 if, on that date, no agreement (or equivalent decision) has been reached between the European Union and the United Kingdom of Great Britain and Northern Ireland, regulating the matters covered therein (“Decree-Law").

The Decree-Law approves several important novelties in this regard, namely the following:

PROVISION OF INVESTMENT SERVICES AND ACTIVITIES AND ANCILLARY SERVICES IN PORTUGAL

•Credit institutions and investment firms authorised in the United Kingdom to provide ancillary services and investment services and activities, operating in Portugal under the right of establishment and the freedom to provide services, may continue to provide such services to investors in the Portuguese territory after the end of the transitional period provided for in the exit agreement, which at this moment corresponds to 31 December 2020 (“Expiry Date”).

•For this purpose, interested entities shall, within 3 months from the Expiry Date, submit to the CMVM (Comissão do Mercado de Valores Mobiliários) the elements contained in Annex I to the Decree-Law, indicating if they intend to (i) terminate the existing agreements; or (ii) request authorisation to maintain their activity in Portugal.

•Entities who intend to request authorisation to maintain their activity in Portugal shall submit such authorisation request to the competent authority within 6 months from the Expiry Date.

PROVISION OF SERVICES IN RELATION TO COLLECTIVE INVESTMENT UNDERTAKINGS IN PORTUGAL

•Management entities authorised in the United Kingdom to provide services relating to collective investment undertakings (CIUs) and operating in Portugal under the right of establishment and the freedom to provide services may continue to provide those services to investors in Portuguese territory after the Expiry Date.

•After the Expiry Date, credit institutions, payment institutions and electronic money institutions established in the United Kingdom and operating in Portugal under the right of establishment and the freedom to provide services may execute agreements or carry out new transactions in Portugal relating to taking deposits, granting credit, payment services and the issue of electronic money, only if they have obtained prior authorisation from Banco de Portugal under the regime applicable to third country entities.

•However, entities covered by the preceding paragraph are still entitled to perform the necessary acts for the execution of (and compliance with) the agreements relating to such services or activities which have been concluded up to the Expiry Date. This provision shall also apply to the provision of services of an ancillary or instrumental nature to a pre-existing master agreement entered into by a client resident in Portugal and which do not constitute new operations or new agreements.