The FCA has said it will re-open its Temporary Permissions Regime notification window on September 30, so any EU-based firm intending to trade in the UK from next year using the Regime can notify the regulator from this date.
The media are frequently using phrases such as “no meaningful progress”, “last ditch” and “make or break” to describe the trade deal talks between the UK and the EU. The transition period ends on December 31 2020, and unless this period is extended, or a deal is struck between the two sides prior to this, the UK and the EU will be trading on World Trade Organisation terms come the start of next year, with no special arrangements in place.
Whatever the eventual outcome of the talks, no one is expecting the existing financial services passporting regime to continue, or for any similar arrangement to replace it. The passporting scheme allows a firm based in one EU member state to trade in other member states without requiring authorisation from each national regulator, and the UK remains part of the passporting arrangements until the transition period expires at the end of the year.
On August 20, the Financial Conduct Authority issued an update regarding its Temporary Permissions Regime (TPR). This Regime will allow European firms to continue to operate in the UK for a limited period following the end of the passporting scheme.
Essentially, the FCA has now said that it will re-open its TPR ‘notification window’ on September 30 2020. From this date, any EU-based firm that wishes to take advantage of the TPR can contact the FCA and formally state that they wish to make use of the Regime.
The TPR allows an EU firm to continue operating in the UK within the scope of its current permissions for a limited period after the end of the transition period. While the firm operates under the TPR, it can then arrange its application for full authorisation from the FCA to operate in the UK in the longer term. The TPR covers both a firm’s pre-existing business and any new business activities it may enter into during the TPR period.
UK firms wishing to operate in the EU need to investigate whether other national regulators have their own arrangements of a similar nature to the TPR.
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