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Posted in European Union, Regulatory and legislative updates, UK

No-deal Brexit: new publications from HM Treasury and the FCA

HM Treasury published guidance on 8 January 2019 for financial services institutions in a no-deal Brexit situation, updating HM Treasury’s 23 August 2018 technical notice on the financial services regulatory framework in the event of a no-deal Brexit. The guidance is limited to advising UK and EEA firms to take steps to ensure continuity of operations and services post-Brexit. Further detail is provided by way of links to existing FCA publications on preparing for Brexit and the temporary permissions regime (“TPR“).

The transitional no-deal Brexit financial services regulatory framework will consist of the TPR and the recently announced financial services contracts regime (“FSCR“). On 7 January 2019 the FCA and PRA announced that the period for firms to notify the FCA of their intention to enter the TPR had begun and would end on 28 March 2019. The following day, the FCA began consulting on the FSCR, a run-off regime which EEA passporting firms will automatically enter into if they do not enter the TPR or if they enter the TPR but fail to obtain full Part 4A authorisation once within it. The FSCR will last 15 years in respect of insurance contracts.