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FCA update – Brexit and temporary permissions regime (TPR)

FCA update – Brexit and temporary permissions regime (TPR)

 

Background

  • This FCA update was published on 1 September 2020; it updates information that was first published by the FCA on 24 July 2018. The weblink to further FCA information is this: https://www.fca.org.uk/brexit/temporary-permissions-regime
  • The UK left the EU on 31 January 2020 and entered a transition period which is due to operate until 31 December 2020.
  • During the transition period, EU law remains applicable in the UK in accordance with the EU-UK Withdrawal Agreement. Firms must continue with implementation plans for any EU legislation that comes into effect before 31 December 2020.
  • The temporary permissions regime (TPR) will enable relevant firms and funds which passport into the UK to continue operating in the UK when the passporting regime falls away at the end of the transition period. The TPR will take effect at the end of the transition period.
  • The window for firms and fund managers to notify the FCA that they want to use the TPR is currently closed. Firms and fund managers that have already submitted a notification need take no further action at this stage.
  • The FCA will re-open the notification window on 30 September 2020. This will allow firms and fund managers that have not yet notified to do so before the end of the transition period.  There will also be an opportunity for fund managers to update their previously submitted notifications, if necessary.

Impacts

Currently, financial services firms and investment funds in any European Economic Area (EEA) member state can use the passporting regime to establish a presence or carry out permitted activities in any other member state.

The FCA website contains information sub-sections for areas including these:

  • which firms and investment funds can use the TPR
  • the rules which will apply to firms and fund operators in the TPR
  • considerations for firms leaving the TPR
  • the notification process for funds
  • TPR fees that your firm or investment fund will need to pay
  • the financial services contracts regime

Timeline with relevant dates to be logged on regulatory calendar

  • FCA notification window for TPR use re-opens on 30 September 2020

Next steps

Any organisations with specific questions must contact the FCA or refer to detailed information on its website.

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