The FCA has updated its web page concerning the Temporary Permissions Regime (TPR) now that the TPR transition period has come to an end.
The TPR ended on 30 December 2023, though some arrangements remain in place to enable some EEA firms to wind down their UK business in an orderly manner within the financial services contracts regime (FSCR).
The FSCR allows EEA firms that previously passported into the UK and that did not enter the TPR, or that left the TPR without being authorised or registered in the UK, to wind down their UK business in an orderly fashion.
Firms in the FSCR are not able to write new UK business and are limited to the regulated activities (or providing services) involved with pre-existing contracts, plus certain limited specified activities.
The FSCR provides 2 discrete mechanisms, supervised run-off (SRO) and contractual run-off (CRO)
The FSCR is time-limited depending on the type of regulated activity being performed (or the services being provided) and applies for a maximum of 15 years for insurance contracts, or a maximum of 5 years for all other contracts. These are maximum periods, and the FCA expects firms in the FSCR to run down their UK business promptly.
About the author
Al Haughton
A compliance technical expert, Al is UKGI's Senior Technical Resources Consultant providing 'back-room' technical support which includes everything from assisting Consultant colleagues with challenging or unusual queries, to updating UKGI's compliance manual, to writing and delivering training, workshops and webinars.
