FCA’s role in preparing for Brexit
Posted in Financial services
On 27 June 2018, the FCA published a statement in relation to its role in preparing for Brexit.
Key points in the statement include:
- the FCA is preparing for a range of scenarios, including one in which the UK leaves the EU on 29 March 2019 without a Withdrawal Agreement and implementation period having been ratified between the UK Government and the EU;
- the FCA will be amending its Handbook to ensure that it is consistent with the changes the Government is making to EU law. In the run up to March 2019, the FCA will limit Handbook changes unrelated to Brexit to those identified as core priorities in its Business Plan as well as other essential items;
- the FCA plans to consult on the Brexit related changes to its Handbook in the Autumn. It also plans to consult on the rules concerning the temporary permissions regime;
- firms and funds that are regulated solely in the UK by the FCA will need to notify the FCA before Brexit of their intention to use the temporary permissions regime. This notification will not require the submission of an application for authorisation. The survey that the FCA issued for inbound firms in March 2018 is intended to help it identify the firms and funds for which a temporary permission may be relevant and inform the design of the regime;
- HM Treasury’s approach to on-shoring the EU acquis will not rely on any new, specific arrangements being in place between the UK and the EU after exit and that, as a general principle, EU27 Member States will be treated as third countries (although this general approach may be deviated in some instances to ensure a smooth transition). The FCA will be taking the same approach; and
- the FCA will continue to progress important initiatives, such as the high-cost credit review, the implementation of the senior managers’ and certification regime and the next steps from the Asset Management Market Study.