UNITED KINGDOM: FCA Reminds Firms to be Ready for End of Transition Period

Tuesday December 1 2020

The Financial Conduct Authority (FCA) has reminded firms to be ready for the end of the transition period in 1 month’s time.

When the transition period ends at 11pm on 31 December, firms will need to be prepared for a number of changes to the regulatory environment in which they operate.

EU laws will no longer apply and passporting will end.

To help firms prepare, the FCA has published extensive information on its website setting out the key issues firms need to focus on. Firms should be aware that:

• The FCA is making use of the Temporary Transitional Power to provide them with more time to comply with a large number of the changes
• However, there are also key requirements that firms need to comply with by 1 January 2021
• Passporting will end on 31 December 2020: firms that intend to carry on providing services currently covered by a passport will need to ensure they will be able to do so after the end of the transition period

The FCA has set out in detail considerations to help firms understand if or how they will be affected and what action they may need to take. The FCA Handbook has also been updated with changes to regulatory requirements that will apply to firms. The temporary permissions regime (TPR) will enable relevant firms and funds which passport into the UK to continue operating in the UK providing that they notify the FCA no later than 30 December.

If a firm currently relies on a passport to provide services to or from the UK, and proposes to cease those services at the end of the transition period, the FCA expects them to ensure the right outcomes for their customers, and provide timely communications to enable them to make appropriate decisions.

Click on the link for further information.