The Financial Conduct Authority has reminded firms to be ready for the end of the transition period in one month’s time. When the transition period ends at 11pm on 31 December, firms will need to be prepared for a number of changes to the regulatory environment in which they operate.
EU laws will no longer apply and passporting will end.
To help firms prepare, the FCA has published extensive information on its website setting out the key issues firms need to focus on. Firms should be aware that:
- The FCA is making use of the Temporary Transitional Power to provide them with more time to comply with a large number of the changes
- However, there are also key requirements that firms need to comply with by 1 January 2021
- Passporting will end on 31 December 2020: firms that intend to carry on providing services currently covered by a passport will need to ensure they will be able to do so after the end of the transition period
The FCA has set out in detail considerations to help firms understand if or how they will be affected and what action they may need to take. The FCA Handbook has also been updated with changes to regulatory requirements that will apply to firms. The temporary permissions regime (TPR) will enable relevant firms and funds which passport into the UK to continue operating in the UK providing that they notify the FCA no later than 30 December.
If a firm currently relies on a passport to provide services to or from the UK, and proposes to cease those services at the end of the transition period, the FCA expects them to ensure the right outcomes for their customers, and provide timely communications to enable them to make appropriate decisions.
Nausicaa Delfas, Executive Director of International at the FCA, said:
‘With just a month to go until the end of the transition period, firms need to make sure they are prepared for the end of passporting, and for the new financial services landscape after the end of the transition period.
‘To help minimise disruption, we have onshored EU legislation and established temporary regimes to allow non-UK firms and funds to operate in the UK after 31 December 2020.
‘We remain committed to open markets, international co-operation and high international standards of regulation.’
The FCA will continue to provide regular updates on its dedicated Brexit webpages, and firms can also call the FCA Brexit information line (0800 048 4255) if they have any further questions.