UK regulator registers decrease in passporting notifications from firms in Q1 FY2019/20

Maria Nikolova

The significant drop in the volume of cases received in the quarter to end-June 2019 might be expected in the current Brexit climate, the FCA says.

The UK Financial Conduct Authority (FCA) has published the Authorisations Quarterly Key Performance Indicators (KPIs) for the first quarter of FY2019/20. The data provides an insight into the work of the FCA’s Authorisations Division during the three months to end-June 2019.

The “passporting in” cases received in the first quarter was 229, markedly down from the 285 such cases received in the prior quarter. There was a drop in the volume of “passporting out” cases too.

“There was a significant drop in the volume of cases received this quarter which might be expected in the current Brexit climate”, the regulator commented.

“We continue to see steady volumes of Passporting in notifications from firms and we continue to proactively signpost firms and national competent authorities to the TPR (Temporary Permissions Regime)”, the FCA added.

In May, the FCA confirmed the extension of the deadline for notifications for the 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.

In September, the FCA published draft directions under its Temporary Transitional Power (TTP). The TTP, as FinanceFeeds has reported, offers the FCA flexibility when it comes to applying post-Brexit requirements, allowing firms to transition to a new UK regulatory framework. The directions are set to become effective on exit day if the UK leaves the EU without an implementation period.

Pursuant to the directions, firms do not generally need to prepare now to meet the changes to their UK regulatory obligations related to Brexit. However, in some cases, firms must take reasonable steps to comply with post-exit obligations from exit day.

Firms that will have to make changes on exit day are:

  • firms subject to the MiFID II transaction reporting regime, and connected persons (for example approved reporting mechanisms);
  • firms subject to reporting obligations under European Market Infrastructure Regulations (EMIR);
  • EEA Issuers that have securities traded or admitted to trading on UK markets;
  • investment firms subject to the Bank Recovery and Resolution Directive (BRRD) and that have liabilities governed by the law of an EEA State;
  • EEA firms intending to use the market-making exemption under the Short Selling Regulation;
  • firms intending to use credit ratings issued or endorsed by FCA-registered credit ratings agencies after exit day;
  • UK originators, sponsors, or securitisation special purpose entities (SSPEs) of securitisations they wish to be considered simple, transparent, and standardised (STS) under the Securitisation.

Read this next

Digital Assets

Midas launches investment strategies for the ‘crypto winter’

Midas.Investments has released three new investment strategies on its custodial CeDeFi platform, creating new opportunities during the ‘crypto winter’.   The platform merges diverse approaches to digital asset management into single-click products to let investors gain steady profits in any market conditions — including the ongoing bear market. a custodial CeDeFi platform, CeDeFi: Unlocking the […]

Digital Assets Wallet adds several ERC-20 tokens

The product expansion includes representatives of the DeFi world, the Metaverse, and the largest stablecoins.

Market News

Savvy Investors to Profit Whether the Stock Market Rebounds or Not

Equities have gone up enormously since the low. SP500 has gained 13.88% since June 17. In August, the indices drifted sideways. On Wall Street, veteran investors expect a move in either direction.

Industry News

Wall Street-backed MEMX obtains SEC approval for options trading platform

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Industry News

Amundi US launches ESG strategy that seeks to outperform S&P 500

Amundi’s Responsible investing team includes more than 45 specialists, and its ESG analysis covers more than 13,500 issuers across debt and equity.

Industry News

Verto launches embedded FX payments solution

The Verto API automates currency conversions, tracks payments and exchange rates in real-time, and is being launched in the follow-up of a $10 million in Series A funding last year.

Industry News

SEC awards over $16m to whistleblowers after another successful enforcement action

The program is 10 years-old and has arguably played a critical role in the Division of Enforcement’s ability to effectively detect wrongdoing, protect investors and the marketplace, and bring violators to justice.

Digital Assets

Ripple submits most succint explanation of Hinman issue in XRP lawsuit

It might be useful to get up to date as this could be the end of the road for the SEC.

Retail FX

TradingView integrates first Brazilian broker, Órama Investimentos

Órama offers all kinds of investment products, from fixed income to crypto-related funds.