FCA TO REOPEN TEMPORARY PERMISSIONS REGIME NOTIFICATION WINDOW FROM SEPTEMBER
Thu Jul 9 2020
The FCA is to reopen its temporary permissions regime for EU entities from the end of September 2020. The UK left the EU on January 31, 2020, and almost halfway through the transition period, which will end about 6 months’ time. From that point, EU law will no longer apply and firms will need to be ready. The UK regulator introduced arrangements for temporary permission that will allow EEA firms to continue providing services in the UK once passporting ends, provided that the relevant notifications are made.
Over 1,000 firms and over 600 fund managers have already notified the FCA, and the UK regulator will be reopening the notification window on 30 September 2020. From 2021, these EEA firms will be called to apply for permanent authorisation to replace their temporary permission. The FCA plans to consult later this year on the approach it will take when assessing applications from overseas firms. And for those EEA firms who do not notify for a temporary permission or who do not obtain a permanent authorisation in due course, the UK Government has legislated to allow them to continue to service pre-existing contracts in the UK.