FCA update, October 2020 – Brexit general readiness
- The FCA is publishing frequent updates and reminders about the need to focus on Brexit readiness before the end of the UK’s transition period at 11pm on 31 December 2020.
- At this point, European Union (EU) law will no longer apply in the UK and passporting will cease.
- The FCA stresses that all firms should make sure they have assessed the impact on them and their customers, and have plans in place to ensure they are ready.
- In the key areas listed on the FCA’s webpage, the FCA expects firms to prepare now and be ready to comply with their changed obligations by 31 December 2020.
- For any remaining onshoring changes where the TTP does not apply, firms and other regulated persons must take reasonable steps during the TTP period to ensure compliance, at the latest by 31 March 2022.
- The FCA has published information about preparing for all scenarios at the end of the transition period for many types of firms and consumers including the banking and payments sectors, general insurers and intermediaries, retail investments, wholesale firms and so on.
The FCA has worked with the Treasury to put in place temporary measures to minimise the potential for disruption for firms and consumers. This includes the Temporary Permissions Regime (TPR) and the Temporary Transitional Power (TTP).
The FCA continues to take on additional functions at the end of the transition period. These include the new systems needed for the FCA to run its own MiFID/R regime, primarily in relation to transparency and transaction reporting, getting ready to supervise Credit Ratings Agencies and Trade Repositories and finalising the system changes needed to ensure that the FCA can fulfil its many regulatory responsibilities.
While the FCA intends to apply the TTP on a broad basis from the end of the transition period until 31 March 2022, there are some areas where it would not be consistent with the FCA’s statutory objectives to grant transitional relief, or where it would not otherwise be appropriate to do so.
An updated version of the FCA Handbook is now available which allows users to look forward to a date beyond the end of the transition period (31 December 2020) to see what rules will apply to their firms.
Timeline with relevant dates to be logged on regulatory calendar
- All organisations need to be ready for changing rules from 1 January 2021
All organisations need to remain closely focused on FCA actions to support the achievement of Brexit readiness; refer to the FCA’s specific webpages for these topics.
If anyone has specific questions or a need for direct help, contact our experts too.