UK Conduct Regulator Consults on Post-Brexit Approach to Authorization for Non-UK Firms
09/23/2020The U.K. Financial Conduct Authority has launched a consultation on its intended approach to international firms seeking to provide regulated financial services in the U.K. after the Brexit transition period ends on December 31, 2020 and the U.K.'s temporary permissions regime comes to an end three years later. The FCA intends to use the consultation responses to inform the publication of a document that would explain the FCA's general approach to regulating international firms. The consultation does not propose any changes to the FCA's existing rules or to the FCA Handbook. Responses should be submitted by November 27, 2020.
The U.K. has established a temporary permissions regime for EEA providers of regulated financial services currently operating in the U.K. under EU passporting rights. The TPR will enable EEA firms to continue providing services in the U.K. after the end of the Brexit transition period. However, the TPR is only intended to last for three years, after which firms will be expected to obtain full U.K. authorization. The consultation sets out the FCA's proposed approach to authorizing and regulating both EEA and non-EEA international firms in the U.K. in future, and the FCA's intended guidance document will help international firms seeking full authorization to prepare their applications. The paper essentially amounts to a discussion of present FCA policy on the authorization process for third country firms, a topic which will become of increased importance after Brexit.
The U.K. Prudential Regulation Authority is expected to consult in January 2021 on its expectations of international banks.
View the FCA's consultation paper.
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