UK Conduct Regulator Extends Period for Use of Its Brexit Temporary Transitional Power

The U.K. Financial Conduct Authority has announced that it will extend its use of the temporary transitional power from June 30, 2020 to December 31, 2020 in light of the change to the date that the U.K. is due to leave the EU to October 31, 2019. The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 grant the Bank of England, the Prudential Regulation Authority and the FCA a temporary power to award transitional relief from regulatory requirements where the requirements have been introduced or have changed as a result of onshoring financial services legislation. The temporary power is only available for the specific purpose of facilitating firms to adjust to onshoring changes and would not be a general power to waive or modify regulatory requirements for any other reason. In particular, the power would not apply to: (i) any provision setting the U.K.'s regulatory perimeter; (ii) the threshold conditions that all firms must meet; and (iii) any requirement that is not within the regulatory remit of the regulators.

The BoE and the PRA are currently consulting on, among other things, extending their use of the temporary transition power to December 31, 2020. Responses to that consultation are due by September 18, 2019.

View the FCA's announcement.

View details of the relevant BoE and PRA consultation.

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