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FCA clarifies firms' obligations and benefits ahead of Brexit

FCA clarifies firms' obligations and benefits ahead of Brexit | Insurance Business

FCA clarifies firms

From March 29 to Halloween, and now we’re here – the final Brexit date of January 31, 2020. Ahead of the UK’s 11pm split with the European Union, the Financial Conduct Authority (FCA) is making sure everyone’s on the same page as to where businesses stand post-divorce.

“During the implementation period (until December 31), EU law will continue to apply,” stated the regulator. “Firms and funds will continue to benefit from passporting between the UK and EEA (European Economic Area). Consumer rights and protections derived from EU law will also remain in place.

“There will therefore be no changes to the reporting obligations for firms, including those for MiFIR (Markets in Financial Instruments Regulation) transaction reporting, under EMIR (European Market Infrastructure Regulation), and for CRAs (credit rating agencies), which will continue in line with existing EU regulatory requirements.”

Meanwhile the windows for notification under the Temporary Permissions Regime and the Temporary Marketing Permissions Regime have closed.

In relation to this, the FCA clarified: “Firms and fund managers that have already submitted a notification need take no further action at this stage. We will confirm our plans for reopening the notification window later this year, which will allow additional notifications to be made by firms and fund managers before the end of the implementation period.”

In the meantime, the regulator will be providing regular updates on its dedicated Brexit webpages. The FCA also has a Brexit information line.

“The work the FCA has undertaken, along with government and the Bank of England, ensured the financial services sector was one of the best prepared industries for any of the possible Brexit outcomes,” commented FCA chief executive Andrew Bailey. “The implementation period gives firms a period of certainty while negotiations are continuing on our future relationship with the EU.

“The FCA intends to use this time to work with government, the Bank of England, firms, and other regulators to ensure the financial services industry is ready for the end of 2020. We will continue to keep firms and consumers updated on any changes that will impact them.”