FCA sets out Expectations for Firms on Brexit

Last week, the FCA issued an update on the steps firms need to take in the event that the UK leaves the EU without a deal on the 31st of October.

The 31st is just over two weeks away and it falls on a Thursday. The FCA has stated that it is aware of the operational challenges posed by leaving the EU on a weekday and expressed that its approach to supervision in this regard will be ‘proportionate and pragmatic’.

Certain firms will be affected more than others by the impacts of Brexit, depending on their activities.

Preparing for no-deal is particularly relevant for those firms that:

  • are a UK business which does any business in the EEA
  • passport into the UK and have not notified the FCA for entry into the Temporary Permissions Regime
  • have consumers in the EEA
  • transfer personal data from the EEA

If the UK leaves the EU with no deal in place, passporting will end and “any EEA passporting firm wishing to continue operating in the UK will need to notify the FCA by 30 October that they wish to enter the Temporary Permissions Regime (TPR).”

Executive Director for International at the FCA, Nausicaa Delfas, said that, “The FCA has been preparing to ensure UK financial services are well placed if the UK leaves without a deal […] We have set out steps certain firms need to take – it is important that firms are as prepared as possible if there is a no-deal exit, and that they are aware of what they need to do.”

For further information, visit the FCA’s dedicated Brexit pages.

About the author

Ash is Managing Director at RWA. He has over 15 years’ experience in the legal and compliance field and ten years in broker sales and leadership roles in national and global insurance firms.

He is highly skilled in the application of risk-based regulation, working closely with businesses at executive and board level to develop commercially viable, compliant systems and controls. Ash is adept in providing solutions-based interpretations of the FCA’s technical standards and facilitating the transfer of compliance skills and education needed for businesses to self-manage their own compliance and training needs.

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