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FCA updates – Brexit actions and onshoring activities during 2020

FCA updates – Brexit actions and onshoring activities during 2020

 

Background

  • The UK left the EU on 31 January 2020 with a Withdrawal Agreement. It has entered a transition period which is due to operate until 31 December 2020.
  • The FCA will provide further information and updates about its expectations of firms. FCA relevant webpages are available at https://www.fca.org.uk/brexit
  • During the transition period, EU law still applies in the UK. New EU legislation that takes effect before the end of the transition period will also apply to the UK.
  • As a general working principle, the UK approach is that EU member states will be treated as third (non-EU) countries following the end of the transition period.
  • The Treasury has laid many Statutory Instruments (SIs) needed to onshore EU legislation in Parliament. Onshoring is due to complete by 31 December 2020.

Impacts

The UK and the EU have indicated, in a Political Declaration, that they intend to reach agreement on the future relationship between the UK and the EU by the end of 2020. The UK government has indicated it does not intend to extend the transition period.

The FCA is working with the UK government, other UK regulators, the European Supervisory Authorities, national authorities in member states and European policymakers on shared issues and priorities.

Firms, funds and trading venues would continue to benefit until 31 December 2020 from passporting between the UK and European Economic Area (EEA) as they do today.

Obligations derived from EU law continue to apply and firms must continue with implementation plans for EU legislation that is still to come into effect before the end of December 2020.

Firms must consider:

  • Passporting will continue during the transition period but firms should not expect current passporting arrangements to continue after the transition period ends.
  • Firms should anticipate a range of possible scenarios for the end of the transition period, including that current activities might no longer be covered.

Timeline with relevant dates to be logged on regulatory calendar

  • End of transition period on 31 December 2020
  • Start of new regulatory conditions from 1 January 2021

Next steps

Consider how you and your customers will be affected and what actions you must take.

The FCA has a dedicated telephone line on 0800 048 4255. The line is open Monday, Tuesday, Wednesday and Friday 9am to 5pm, and Thursday 9.45am to 5pm.

Click here if you would like to get in touch with us.