Following its CP18/29 at the end of last year, the FCA has now opened its doors to firms and funds from Europe to register their intention to apply for full UK authorisation following Brexit.
The Temporary Permissions Regime (TPR) allows businesses from the EEA that register by 28 March to continue regulated business in the UK for up to three years after Brexit, during which time they will need to become fully authorised if they wish to continue.
If there is an official transition period following Brexit that covers passporting from Europe, the TPR may not be needed, but the FCA advises firms not to wait for further clarity before deciding whether to go ahead, as it will provide a backstop. Registration is through the FCA’s Connect system and anyone not already registered for Connect will need to do so first.
The main change since CP18/29 is that umbrella UCITS registered for the TPR will be allowed to launch new sub-funds after Brexit and for these to be included in the regime.
Starting in the fourth quarter of this year, the FCA will allocate “landing slots”, during which applications for full authorisation will need to be submitted.
The FCA’s financial services contracts regime will enable firms that either choose not to enter the TPR or which fail to register in time to wind down their UK business in an orderly fashion following Brexit.