On 10th October 2018, the FCA published two consultation papers setting out is proposals in the event the UK leaves the EU on 29 March 2019 without an implementation period.
The first consultation paper focuses on “Amendments to the FCA Handbook and Binding Technical Standards” resulting from leaving the EU, and the FCA’s approach after Brexit to EU non-legislative material.
This consultation paper proposes changes that may need to be made to the FCA Handbook and Binding Technical Standards, whilst setting out the FCA’s approach after Brexit to EU non-legislative material. The majority of the changes are consequential to those proposed by the Government under the European Union (Withdrawal) Act 2018. For example, changes include removing references to EU institutions, such as the European Commission or the European Supervisory Authorities, which will be replaced with the relevant UK equivalent.
The second consultation paper covers the “Temporary Permissions Regime” which will allow EEA firms and funds passporting into the UK to continue operating here for a limited period after Brexit while seeking full UK authorisation. Presently, certain EEA firms can provide financial services in, or into the UK, and EEA investment funds can be marketed in the UK by way of a passport. The consultation paper sets out how EEA firms and investment funds can continue to carry on regulated business in or into the UK for a limited period after Brexit while seeking full authorisation in the UK. The regime will only be available from 29 March 2019 if the UK leaves the EU without an implementation period.