Over 1,000 EU firms and fund managers have decided to enter Temporary Permissions Regime, FCA exec says

Maria Nikolova

Nausicaa Delfas, Executive Director of International at the FCA, updates on preparations for Brexit.

More than 1,000 EU firms and fund managers have already decided to enter the UK Temporary Permissions Regime (TPR) and seek to continue to do business in the UK after Brexit, Nausicaa Delfas, Executive Director of International at the Financial Conduct Authority (FCA) said in a speech today. 

Ms Delfas noted that the FCA continues to prepare for all scenarios, including the so-called “hard Brexit”. She stressed that, in case the UK leaves the EU without a deal, passporting will end.

To prepare for this, the FCA together with the Treasury and the Bank of England, has introduced new regimes such as the Temporary Permissions Regime and the Financial Services Contracts Regime (FSCR).

The Temporary Permissions Regime will allow EU firms and funds that currently passport into the UK to continue operating in the UK in case of “hard Brexit”, and end of passporting. EU firms will temporarily be able to continue to operate within the scope of their current permissions and EU funds will be able to continue marketing into the UK.

Firms will need to notify the FCA that they wish to use the regime using the Connect system. Notifications must be submitted by the end of March 28, 2019, just a week away.

Firms which have not notified the FCA that they wish to enter the Temporary Permissions Regime but need UK permission to perform their existing contracts, will automatically fall within the FSCR regime. This will allow firms that have pre-existing contracts in the UK to wind down their business in an orderly fashion. However, there are limits to the FSCR regime, for example EEA established fund managers, depositories and trustees will not be able to manage or provide depositary services to UK authorised funds, unless they enter the Temporary Permissions Regime.

After the notification window closes, the FCA will inform the firms of when they will have to submit their application for authorisation – their ‘landing slots’. The regulator says it will ensure that firms and funds have enough time to prepare their applications. The FCA expects the first landing slots to be October to December 2019 and the last to be January to March 2021.

Sadly enough, at the moment, there is no similar system for UK firms who passport into the EU. Several EU Member States have put arrangements in place similar but not identical to the TPR arrangements. These include jurisdictions important to UK firms, such as Germany, Spain, France, Ireland, Italy, Luxembourg and the Netherlands.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<