Tuesday, 08 January 2019 09:15

FCA opens ‘no-deal’ Brexit passporting permissions process

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The notification window for the temporary permissions regime, in the event of a ‘no-deal’ Brexit, is now open.

The temporary permissions regime will allow EEA-based firms currently passporting into the UK to continue new and existing regulated business within the scope of their current permissions in the UK for a limited period, while they seek full FCA authorisation, if the UK leaves the EU on exit day without an implementation period in place. 

It will also allow EEA-domiciled investment funds that market in the UK under a passport to continue temporarily marketing in the UK.

Firms will need to notify the FCA that they wish to enter the temporary permissions regime using its Connect system. 

The regulator said fund managers will also need to notify them of which of their passported funds they wish to continue to market in the UK temporarily via Connect.

The notification window opened yesterday and closes at the end of 28 March. 

The FCA has also published a guide for Connect covering the notification process for firms and investment funds.

There will be no fee for notifying for the regime and firms and fund managers should not wait for confirmation of whether there will be an implementation period before they submit their notification.

Firms that have not submitted a notification will not be able to use the regime.

An FCA statement read: “Firms that do not notify the us that they wish to use the temporary permissions regime will, where they meet the relevant conditions, be subject to the financial services contracts regime.

“We expect to consult on our approach to this regime shortly.

“Once the notification window has closed, fund managers that have not submitted a notification for a fund will be unable to use the temporary permissions marketing regime for that fund.

“They will not be able to continue marketing that fund in the UK on the same basis as they did before exit day.

“The only exception to this is for new sub-funds of EEA UCITS that are in the temporary permissions marketing regime on exit day.

“It is possible for such new sub-funds to enter the temporary permissions marketing regime after exit day.”

Details of firms and investment funds with temporary permission will be shown on the FS Register. 

 

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Last modified on Tuesday, 08 January 2019 09:18
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