UK Financial Conduct Authority Launches Survey for EEA Firms Operating in the UK Under Single Market Passports
The UK Financial Conduct Authority has launched a short online survey seeking information from European Economic Area firms currently operating in the UK under a passport. The information obtained will identify those firms for which a “temporary permission” may be relevant following the UK’s withdrawal from the European Union. The possibility of a “temporary permission regime” was raised by HM Treasury in December 2017 as a means by which firms previously operating under a passport would be able to enter into new business and fulfil existing contracts with UK customers for a period of time after exit day, while seeking full authorization in the UK. HM Treasury has not yet prepared legislation relating to the temporary permissions regime, and EU-UK negotiations are in any event ongoing, however the FCA believes that it is likely that firms operating under a passport would need to inform it of their intention to operate under the temporary regime via a straightforward notification process in advance of the UK’s withdrawal.
The survey should be completed by any firm that passports into the UK (either via a branch or on a cross-border services basis) or that markets funds in the UK. Dual-regulated firms will need to follow the regime set out by the Prudential Regulation Authority. The FCA seeks responses to the survey by May 11, 2018.