FCA provides info for firms regarding Brexit implementation period
During the implementation period, due to last until December 31, 2020, EU law will continue to apply.
The UK Financial Conduct Authority (FCA) has provided information for firms regarding the Brexit implementation period.
On January 31, 2020 at 11pm the UK will leave the European Union (EU) and enter an implementation period, which is due to last until December 31, 2020. During the implementation period, EU law will continue to apply. Firms and funds will continue to benefit from passporting between the UK and EEA. Consumer rights and protections derived from EU law will also remain in place.
The regulator stresses that there will be no changes to the reporting obligations for firms, including those for MiFIR transaction reporting, under EMIR, and for CRAs, which will continue in line with existing EU regulatory requirements.
The windows for EEA firms to notify the FCA that they want to use the Temporary Permissions Regime (TPR), or for fund managers to notify the FCA of any funds they want to continue to market in the UK under the Temporary Marketing Permissions Regime (TMPR), will close at the end of today (January 30, 2020).
Firms and fund managers that have already submitted a notification need take no further action at this stage. The FCA will confirm its plans for reopening the notification window later this year, which will allow additional notifications to be made by firms and fund managers before the end of the implementation period.
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.
Andrew Bailey, Chief Executive of the Financial Conduct Authority, commented:
“The implementation period gives firms a period of certainty while negotiations are continuing on our future relationship with the EU. The FCA intends to use this time to work with government, the Bank of England, firms and other regulators to ensure the financial services industry is ready for the end of 2020. We will continue to keep firms and consumers updated on any changes that will impact them.’
As things develop during the year, all financial services firms are urged to consider how Brexit will impact their business and what action they need to take to be ready for January 1, 2021 to minimise risks to customers.