FCA launches further consultations ahead of the UK’s exit from the EU

The FCA is working to ensure as smooth a transition as possible as the UK prepares to leave the European Union. Earlier this year, we set out the FCA’s role in preparing for Brexit[1]. This consultation, along with those published in October[2], is an important part of this work.

This consultation paper[3] principally focuses on a range of Handbook and BTS amendments which were not included in our earlier consultation papers issued in October.  It also consults on:

• further amendments to the Handbook regarding the Temporary Permissions regime
• amendments to the Handbook to reflect the new Credit Rating Agency and Trade Repository regimes
• our approach to non-Handbook guidance and our approach to forms that appear in the Handbook

The FCA is not proposing any policy changes unrelated to Brexit in this consultation paper.

Nausicaa Delfas, Executive Director of International at the FCA said:

“The FCA is preparing for a range of scenarios.  We have published further proposals to prepare for the possibility the UK leaves the EU in March 2019 without an implementation period.

“Our aim is to provide certainty and confidence for firms operating in the UK.  These proposals will ensure we have a robust regulatory regime from day one, and a smooth transition for EEA firms and funds currently passporting into the UK.

“We welcome continued engagement from across the sector on these preparations for Brexit.”

This consultation paper is relevant to all stakeholders.  The FCA is keen to hear from the widest possible range of stakeholders across sectors, including industry bodies and consumer groups.

The consultation is open until 21 December 2018. Responses can be submitted via the FCA’s online form, by email or in writing.

Notes to editors 

1. CP18/36: Brexit: proposed changes to the Handbook and Binding Technical Standards – second consultation[3]
2. The European Union (Withdrawal) Act 2018[4]
3. On 25 October 2018, the UK Parliament approved legislation[5]  delegating powers to regulators to address deficiencies arising from the UK’s withdrawal from the EU.
4. On 6 November 2018, the UK Parliament  approved  legislation[6] setting out the temporary permissions regime for passporting firms under Schedules 3 and treaty firms under schedule 4 to FSMA. Parliament has also approved[7] legislation providing similar schemes for institutions passporting under the Electronic Money Directive or Payment Services Directive 2.  Under the legislation relevant firms which notify before UK withdrawal of their wish to continue to do business in the UK, will be deemed to have temporary UK authorisation.  A similar regime will apply to the UK recognition of investment funds. 
5. Firms can find out if they use a passport by checking the Financial Services Register.[8]
6. We have set out our approach to transition regimes, alongside the temporary permissions regime:
   
   1. Temporary permissions regime[9]
   2. Registering as a credit rating agency[10]
   3. Registering as a trade repository[11]
   4. Temporary authorisation regime for data reporting services providers (DRSPs)[12]
7. On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
8. The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this, it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
9. Find out more information about the FCA.[13]