On 28 March 2018, the PRA published a Dear CEO letter from its CEO and Bank of England Deputy Governor, Prudential Regulation, Sam Woods, on firms' preparations for Brexit. Among other things, Mr Woods says that in light of the agreement between the UK and EU27 on a transition (or implementation) period and the UK Government’s commitment to providing for a temporary permission regime as a backstop:
- firms may plan on the assumption that PRA authorisation will only be needed by the end of the transition period. Firms should consider how best to make use of the additional time provided by the transition period in their planning;
- the PRA will continue to work closely with firms and will provide guidance on the timing of their applications in the light of firms’ individual circumstances, in the context of any relevant developments in the political process, and with a view to making the process run as smoothly as possible.