The UK government has guaranteed continued access to UK markets until 2020 for Gibraltar-based financial services firms, regardless of the Brexit deal.
The decision will allow insurers domiciled in Gibraltar to continue to write business in the UK market post-Brexit.
Work is underway between the two governments on a replacement framework to endure beyond 2020.
The new framework will build on the current deal to provide shared, high standards of regulation, underpinned by modern arrangements for information-sharing, transparency, and regulatory co-operation.
Robin Walker, minister at the department for exiting the EU, said he was delighted with the agreement.
He explained: “Today we have agreed a positive package deal on issues surrounding our exit from the EU, once again demonstrating that we stand shoulder to shoulder with Gibraltarians in our unwavering commitment to the UK-Gibraltar relationship.”
The economic secretary to the Treasury, John Glen, commented: “We are ensuring that Gibraltar’s access to UK markets will continue unchanged until 2020, even in the unlikely event of no deal being reached.”
“This will give us the time we need to work with the Government of Gibraltar to design a new, modernised agreement, based on similar, high standards of regulation and enforcement.
According to Fabian Picardo, chief minister of Gibraltar, the guarantee indicated the strengthening of the bilateral relationship.
Picardo said: “The terms for it to endure are further cemented as we realise the commitment to maintain and enhance market access for Gibraltar service providers into the UK post-Brexit.”