The United Kingdom’s transition from the European Union was completed on 31 December 2020 following years of intense debate and negotiation.
European law no longer applies in the United Kingdom and, whilst a deal has been agreed with the bloc, this primarily focused on the trading of goods rather than services.
As such, many financial services businesses, including insurance brokers, need to change their existing systems and services if they wish to continue trading within the European Union.
Significantly, ‘passporting’ is no longer possible, meaning that firms who wish to continue providing services in the European Economic Area (EEA) will need to be compliant with the local laws and regulation of the country concerned. The FCA expects that firms take appropriate steps to act consistently and compliantly with such local regulation to ensure appropriate outcomes for consumers are maintained.
For EEA firms operating in the UK, the FCA and other authorities has introduced the Temporary Permissions Regime (TPR) which allow such firms to continue operating in the UK for a limited period while they seek FCA authorisation.
Under the Financial Services Contracts Regime (FSCR), firms that have chosen not to enter the Temporary Permissions Regime (TPR), have been allowed time to make an orderly departure from their UK business.
HM Treasury has also given the FCA new authority to use Temporary Transitional Power (TTP) to help firms adapt to regulatory changes and new rules.
The team at RWA has produced a Brexit Guide for Insurance Brokers, which will be kept under regular review. Further interpretation and analysis will be provided by our Compliance team to help you understand the changes that Brexit has brought.
More information about Brexit and the impact on UK financial services is available on the FCA website.