On October 10, the UK Financial Conduct Authority (FCA) published two consultation papers relating to the United Kingdom’s withdrawal from the European Union (Brexit). The first, CP18/28, is the FCA’s first consultation paper on proposed changes to the FCA Handbook and to binding technical standards (BTS) resulting from Brexit. The second, CP18/29, focuses on the temporary permissions regime for inbound firms and funds. The temporary permissions regime will allow EU firms and funds to continue regulated business in the United Kingdom, if the United Kingdom leaves the European Union in March 2019 without an implementation period in place (for further details, see the July 27 edition of Corporate & Financial Weekly Digest).
In CP18/28, the FCA considers:
- Its approach to reviewing the Handbook and BTS to ensure an operational regulatory framework after Brexit;
- Proposed changes to the Handbook and to BTS arising from financial services Brexit statutory instruments (SIs) published by the government to date;
- Its approach to EU level 3 materials after Brexit, including guidance published by the European Supervisory Authorities;
- Its approach to the use of powers to phase in Brexit regulatory requirements.
CP18/29 sets out the following:
- Details of the temporary permissions regime for firms and fund marketing activities, including which firms and investment funds can use the regime;
- How the temporary permissions regime will operate for firms, including what the FCA expects from firms and how it will supervise them;
- The rules that the FCA proposes to apply to firms and fund marketing activities during the temporary permissions regime;
- Additional information for Electronic Money Institutions, Payment Institutions and Registered Account Information Service Providers;
- How the temporary permissions regime will operate for investment funds; and
- The FCA’s proposals for how the regime will be funded.
Comments can be made on CP18/28 and CP18/29 until December 7, . The FCA also intends to launch a further consultation, following CP18/28, in autumn 2018.
CP18/28 is available here.
CP18/29 is available here.