The Financial Conduct Authority (FCA) has recently set out its expectations for firms on Brexit. The FCA has issued an update on steps certain firms need to take in case the UK leaves the European Union on October 31, 2019, without a deal.
The regulator noted that in case of a no-deal Brexit, passporting will end. Any EEA passporting firm willing to continue operating in the UK has to notify the regulator by October 30, 2019, that they wish to enter the Temporary Permissions Regime (TPR). Fund managers have until October 16, 2019 to inform the FCA if they want to make changes to their existing notification.
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 Financial Conduct Authority will generally expect firms to have a physical presence in the UK to help ensure effective supervision.
Temporary permissions regime (TPR)
In order to get more information on how the temporary permissions regime (TPR) and Financial services contracts regime (FSCR) will enable EEA-based firms to continue operating in the UK after Brexit check out the diagram prepared by the FCA