FCA confirms shift of Temporary Permissions Regime deadline to end-October 2019

The UK Financial Conduct Authority (FCA) today confirms the extension of the deadline for notifications for the temporary permissions regime (TPR) to October 30, 2019. 

As previously guided, TPR would allow EEA-based firms passporting into the UK to continue new and existing regulated business within the scope of their current permissions in the UK for a limited period, while they seek full FCA authorisation.

This regime will also allow EEA-domiciled investment funds that market in the UK under a passport to continue temporarily marketing in the UK. The deadline for applying to the Trade Repository and Credit Ratings Agencies has also been extended to the same date. For EEA payment services and e-money firms, the notification window for temporary permission is closed, but it will open again under the relevant HM Treasury Regulations on July 31, 2019 and end on October 30, 2019.

Nausicaa Delfas, Executive Director of International at the Financial Conduct Authority said:

‘The FCA continues to plan for all Brexit scenarios, which includes a no-deal Brexit. Extending the deadline for firms to notify the FCA they want to enter the TPR is part of this ongoing work. It is important that firms also continue to plan for all scenarios, including the possibility of a no-deal Brexit at the end of October 2019.

Parliament has given the UK financial regulators powers to make transitional directions connected to changes in financial services legislation made under the EU (Withdrawal) Act 2018. The FCA have stated that it intends to make use of the temporary transitional power to ensure that firms and other regulated persons can generally continue to comply with their regulatory obligations as they did before exit. This will enable firms to adjust to post-exit requirements in an orderly way.

The FCA has explained previously that, in case the UK leaves the EU without an implementation period, it will not take a strict liability approach and does not intend to take enforcement action against firms and other regulated entities for not meeting all requirements straight away, where there is evidence they have taken reasonable steps to prepare to meet the new obligations by exit day. However, firms should use the additional time between now and the end of October to prepare to meet these obligations. If firms are not ready to meet these obligations in full, the FCA will expect to see evidence why this was not possible.