Following April’s agreement with EU leaders to offer the UK an extension on article 50 for additional five months, the FCA is also extending the deadline for financial services firms and investment funds to register for its Temporary Permissions Regime (TPR) until October 30.
The City watchdog also states that fund managers that wish to update their notification should email the Financial Conduct Authority with their firm’s reference number.
The Temporary Permissions Regime (TPR) aims to mitigate potential risks of a ‘no-deal Brexit,’ where the passporting regime falls away abruptly. This scenario means that there will not be a transition period in place when the UK withdraws from the EU, i.e., the UK will become a ‘third-country’ in relation to the bloc.
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In this case, the TPR will come into force on exit day for a maximum of three years within which the EEA financial services firms operating in the UK, and fund managers marketing passported funds, will be required to obtain authorization in the UK.
How the temporary permissions regime will work
EEA firms that currently access the UK market through passporting licenses can do so by notifying the FCA of their wish to enter the temporary regime to continue their regulated activities within the scope of their current permissions. After that, they will need then apply for a full authorization during the TPR period.
Commenting on this, Nausicaa Delfas, FCA’s executive director of international, said: “The FCA continues to plan for all Brexit scenarios, which includes a no-deal Brexit. Extending the deadline for firms to notify the FCA they want to enter the TPR is part of this ongoing work. It is important that firms also continue to plan for all scenarios, including the possibility of a no-deal Brexit at the end of October 2019.”
She added: “As more information emerges about what Brexit will mean for financial services, firms need to make sure they understand the implications and plan accordingly. If firms are unsure of our expectations or what they need to do, they should visit our Brexit pages on the FCA website.”