FCA to extend deadline for applying for temporary permissions regime as Brexit is delayed
The UK regulator will be extending the date by which firms and funds should notify it for entry into TPR to January 30, 2020.
The UK Financial Conduct Authority (FCA) has just provided an update regarding Brexit.
The European Union and the UK have agreed to extend the date for the UK’s withdrawal from the EU. As a result, firms do not need to take action to implement Brexit contingency plans for October 31, 2019, the FCA explains.
The regulator will be extending the date by which firms and funds should notify it for entry into the temporary permissions regime (TPR) to January 30, 2020. Fund managers will have until January 15, 2020 to inform the FCA if they want to make changes to their existing notification.
Firms should continue to comply with existing regulatory requirements, including those relating to MiFID transaction reporting and EMIR trade reporting requirements. The arrangements described in the FCA’s announcement of 11 October are suspended and the FCA expects firms to continue to report as normal.
After exit, firms who notified the FCA of their intention to use the TPR will be contacted and provided with a landing slot when they will need to submit their application for full UK authorisation. Upon authorisation, the FCA will generally expect firms to have a physical presence in the UK to help ensure effective supervision.
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.
In its press release on October 11, 2019, the FCA explained that, on MiFID transaction reporting, which is a crucial part of the FCA’s approach to market oversight, firms that are not able to comply fully with the regime at the time of the UK’s exit from the EU will need to be able to back-report missing, incomplete or inaccurate transactions.