FCA UK clarifies Brexit Broker passporting Impact, as the leaders of the UK and EU are in the process of UK EU exit negotiations. What will change after the UK will leave the bloc?
21 December, AtoZForex – The Financial Conduct Authority (FCA) of the UK has released an announcement on its website. The FCA’s announcement comes in line with the upcoming EU financial regulations MiFID II. The UK regulator rushes to remind the market participants also about the second phase of the Brexit negotiations.
FCA UK clarifies Brexit Broker passporting Impact
Specifically, the FCA notes that it welcomes the progress that has been achieved in terms of Brexit talks. The regulator further states that it supports the open markets and the free trade in the financial services markets.
Following on this, the FCA highlights that the final conditions of Brexit are still in the process of assessment. Yet, the key UK watchdog anticipates that the firms will still be able to benefit from passporting between the EEA and UK after Brexit takes place.
Moreover, the FCA welcomes the initiative to provide for an implementation period to support the smooth UK EU exit process. Also, the FCA states it will oversee the negotiations and provide additional information to firms when applicable.
FCA will cooperate with home regulators
The UK supervisor states in its official press release:
“Today, HM Treasury has also announced that, if necessary, the Government will legislate for a temporary permissions regime. This regime will enable relevant firms and funds to undertake new business within the scope of their permission, enable them to continue performing their contractual rights and obligations, manage existing business and mitigate risks associated with a sudden loss of permission. “
The regulator further stresses that firms and funds that are solely regulated by the FCA would need to inform the FA before the exit day in case they are willing to benefit from the regime. This notification for the temporary permission will not require the submission of an application for authorization.
In order to support this, the FCA will carry on cooperation with the home state regulators of EEA firms and the ESA. The regulator mentions that firms based in the UK offering their services in EEA should continue to prepare for various scenarios. They also should discuss the arrangements and the potential implications of the implementation period with the EU regulator.
You can find the full announcement from the FCA here.
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