Firms and funds solely regulated in the UK by the FCA will need to give the regulator notice the day before the UK officially exits the EU if they want to benefit from a temporary permissions regime, proposed by the Government today.
While an implementation period is still yet to be agreed, a statement from the regulator says it is “anticipated” that firms will still be able to benefit from passporting between the UK and European Economic Area after the official exit date and during the implementation period.
A statement from the FCA says: “The FCA welcomes the intention to provide for an implementation period to ensure a smooth and orderly exit of the UK from the EU. The FCA will monitor the negotiations and provide further information to firms as appropriate.”
The statement says the temporary permissions regime, announced by the Treasury, would allow firms to do new business within the scope of their permission, let them continue carrying out their contractual rights and obligations, manage existing business and reduce the risks that might come from a sudden loss of permission.
The FCA says firms or finds wanting to benefit from the temporary permission regime would not need to submit an application for authorisation.
It says it will set out further details of its approach in the new year.
The regulator says UK-based firms with clients in the EEA should “continue to prepare for a range of scenarios” and discuss the implications of an implementation period with the relevant EU regulator.
