The FCA said: “In the run up to March 2019, we will limit Handbook changes unrelated to Brexit to those identified as core priorities in our Business Plan as well as other essential items.
“We plan to consult on these changes in the autumn, subject to the Treasury’s timelines for Statutory Instruments (SIs). We also plan to consult on the rules which will apply to firms in the temporary permissions regime.”
The regulator says that further to the announcement from the Treasury on its approach to amending financial services legislation under the European Union (Withdrawal) Act - which has now received Royal Assent - it is updating stakeholders on how it is preparing for the UK leaving the European Union.
The FCA said: “We continue to prepare 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 EU (Withdrawal) Act will transfer and convert existing EU law at the point of exit into UK law. It also gives powers to ministers to make secondary legislation to amend this legislation to ensure it functions effectively when the UK leaves the EU.
As part of this, the Treasury intends to task the FCA with amending and maintaining EU binding technical standards (detailed EU rules). These rules sit underneath EU regulations and directives and provide technical detail of how those requirements must be met.