Both the Government and the FCA have published statements on prospective plans to allow for post-Brexit continuity in the financial services sector, even in the event of no deal with the EU.
The main highlights of the statements include:
- Legislating to allow EEA firms and funds to obtain “temporary permission” to continue operating in the UK for a limited time
- Legislating to ensure that other contractual arrangements not covered by the “temporary permissions” (such as insurance contracts) can still operate
- In the absence of EU authorities, ensuring UK authorities (such as the Bank of England) will be able to take up the mantle
- Generally ensuring the necessary technical arrangements are in place to avoid disruption in the financial sector
The FCA will monitor the negotiations and review its proposed action accordingly.