The UK FCA has provided information for firms regarding the Brexit implementation period. This transition period is due to last until December 31, 2020.
January 30, 2020, | AtoZ Markets – The Financial Conduct Authority (FCA) has sought to reassure the industry ahead of the UK’s departure from the European Union (EU) tomorrow. At 11pm tomorrow night, the UK will leave the EU and enter an implementation period. The transition phase is due to last until December 31, 2020.
FCA warns of temporary permissions deadline as Brexit transition period looms
However, the FCA has reminded EEA firms that they have until later today (30 January) to apply for use of the temporary permissions regime (TPR). Following the UK’s exit from the EU at 11pm tomorrow, there will be no immediate change to EEA firms ‘passporting’ into the UK.
Nevertheless, if a deal is not agreed with the EU by 31 December 2020, the FCA will give those who have applied to the TPR a landing slot. The landing slot will be used to apply for full UK authorization. The regulator intends to reopen the TPR application window later this year. However, the FCA has yet to confirm the exact details of when this will happen.
Financial services sector prepared for Brexit outcome
In a statement today outgoing chief executive Andrew Bailey said the financial services sector was “one of the best-prepared industries for any possible Brexit outcomes”.
According to Bailey, the implementation period gives firms a period of certainty while negotiations are ongoing with the EU. Hence, the FCA intends to take advantage of this implementation period by working with the government, the Bank of England, firms and other regulators. The goal is to ensure that the financial services industry is ready for the end of 2020.
The regulator urged firms to act in preparation for the end of the transition period in December. This, of course, will help minimise risks to customers.
FCA preparation for UK’s departure
The FCA has always maintained a non-political stance on Brexit. Earlier this month, Mr Bailey said the regulator had completed all of its work in preparation for the UK’s departure.
The watchdog boss said it had “not been easy” to prepare for Brexit alongside other business priorities. However, according to him, doing so had been one of the FCA’s “biggest achievements” of 2019.
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