PS19/5 and feedback on our Brexit consultations

Read PS19/5 (PDF 2.64MB)

Instruments

• Appendix 1: Near-final Handbook instruments (PDF 13.56MB)
• Appendix 2: Near-final BTS instruments (PDF 1.43MB)

Since October 2018, we have published a series of consultations to ensure a functioning regulatory framework for financial services. We also issued public statements on our proposed use of the temporary transitional power (TTP) delegated to us by the Government and on the treatment of Gibraltar-based firms under our Handbook after Brexit.

This Policy Statement (PS) sets out our responses to the feedback we have received on our proposals to:

• amend our Handbook and BTS - read Chapters 4,5,6 and 8
• establish a temporary permissions regime (TPR) for European Economic Area (EEA) entities operating in the UK and a financial services contracts regime (FSCR) for those EEA entities seeking to service existing business, but not undertake new business, in the UK after Brexit – read Chapter 7
• establish regulatory regimes for credit-rating agencies, trade repositories and securitisation repositories – read Chapter 9
• provide guidance on our approach to EU Level 3 material – read Chapter 10
• provide guidance on our approach to guidance that sits outside our Handbook (non-Handbook guidance) – read Chapter 10
• provide guidance to the use of our forms – read Chapter 10

This PS contains responses to these Consultation Papers (CPs):

• CP18/28 and CP18/36 on proposed changes to the Handbook and BTS
• CP18/29 on a temporary permissions regime for inbound firms and funds
• CP19/2 on Brexit and contractual continuity
• CP18/34 on regulatory fees and levies (regarding question 10 on firms in the temporary permissions regime contributing to the devolved authorities’ debt advice levy)

Who this applies to

Given the breadth of expected changes set out in this PS, we expect many of our stakeholders to be affected. In Annex 2 we list which stakeholders we anticipate are affected by the specific changes to our Handbook and BTS.

Updates to this policy statement

29 March 2019

We have now published the majority of our final Handbook and BTS instruments. These can be found on our Handbook website.

Many of the amendments in the instruments are made under regulation 3 of the Financial Regulators’ Powers (Technical Standards) (Amendment etc.) (EU Exit) Regulations 2018. As required under those regulations, we have sought and received the Treasury’s approval to make these instruments.

The final instruments are unchanged from the near-final versions except for minor amendments, including updating references to SIs. The most significant of these is that the commencement date for the instruments is now linked to ‘exit day’ as specified under the European Union (Withdrawal) Act 2018.  

The final instruments include those relating to the temporary permissions regime and the Financial Services Contracts Regime. The temporary permissions regime instrument includes guidance on disclosure of information by incoming EEA-based firms about the impact of Brexit for investor compensation scheme cover in the firm’s home state.

We have also published our finalised guides on:

• our approach to EU non-legislative materials (PDF)
• our approach to non-Handbook guidance where it relates to EU-law or EU-derived law (PDF)
• completing our forms after the UK’s withdrawal from the EU (PDF)

We have also updated our Transitional Directions.

A small number of BTS are not included as they must be made by the Prudential Regulation Authority first. Additionally, one Handbook instrument has not been made – Exiting the European Union: SMCR and APR (Amendments) (Solo-Regulated Firms) Instrument 2019. This instrument requires the Government to pass SM&CR-related legislation before our Board can make it in final form.