UK financial regulator Financial Conduct Authority (FCA) has published two consultation papers, outlining proposals in the event the UK leaves the European Union on March 29, 2019 without an implementation period, as as named ‘Hard Brexit’.
The regulatory body also set out its approach in regulating the Credit Ratings Agencies, Trade Repositories and Data Reporting Services Providers.
Both of the two consultation papers focus on amending the FCA Handbook and Binding Technical Standards, which contain detailed EU rules that bind the FCA with responsibility for after exiting the European Union.
The financial regulatory body noted that it is working to ensure a smooth transition process as the UK is preparing to leave.
Certainty and Confidence for Firms Operating in The UK Are the Goal
In her turn, Nausicaa Delfas- Executive Director of International at the FCA said:
“The FCA is planning to be ready for a range of scenarios. Today we are publishing two consultation papers to ensure that in the event the UK leaves the EU in March 2019 without an implementation period, we have a robust regulatory regime from day one, and to ensure a smooth transition for EEA firms and funds currently passporting into the UK.
This is consistent with our aim to provide certainty and confidence for firms operating in the UK. We welcome engagement from across the sector, as we continue with our preparations for Brexit.”
Media resources described the consultation paper to be “relevant to those EEA firms and investment funds currently doing business in or into the UK, or being marketed in the UK, through a passport”, and welcomes to hear from these firms and funds managers passporting into the UK who intend to use the Temporary Permissions Regime.
The FCA suggested in its consultation paper changes that may need to be made to the FCA Handbook and BTS, whilst setting out the FCA’s approach after Brexit to EU non-legislative material.
Reports pointed to that the FCA stressed it especially welcomes feedback on whether compliance with changes to regulatory requirements by exit day would be a particularly challenging for firms.
The papers are open until December 7, 2018, amid expectations that the FCA will issue its final version of rules in quarter 1 2019.