Today the FCA has reminded firms to be ready for the end of the transition period in one month’s time.
The transition period, which ends at 11pm on 31 December, will see firms facing a number of changes to the regulatory environment in which they operate. EU laws will no longer apply and passporting will end.
To aid firms in preparing for these changes, the FCA has published extensive information setting out the key issues that they need to focus on. These include:
- 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. Further information can be found in the FCA Handbook, which has also been updated with changes to regulatory requirements. 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.
For those firms that currently rely on a passport to provide services to or from the UK, and plan 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.’
For further updates visit the FCA’s Brexit webpages here, or call the Brexit information line on 0800 048 4255.
If you would like to discuss how these changes could affect your business, feel free to contact us here.