In this post we summarise the latest Brexit developments related to asset management.

FCA extension to use of temporary transitional power

The FCA has announced that it will extend the proposed duration of the directions issued under the temporary transitional power to the 31 December 2020. This is to reflect the extension of Article 50. Other than the additional time the FCA’s approach remains unchanged. The FCA will publish further information before exit day on how firms should comply with post-exit rules. The extension is aligned with the end date intended by the Bank of England and the PRA.

EU Exit draft SI

The draft Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) (No. 2) Regulations 2019 (with draft explanatory memorandum), which remedies certain deficiencies in legislation arising as a result of the UK’s exit from the EU, has been published.

BoE/PRA consultation on changes following extension of Article 50

The Bank of England (BoE) and the PRA has published a consultation paper (CP18/19) setting out changes to the BoE’s and the PRA’s EU Exit Instruments following the extension of Article 50. The consultation contains, at Section A, an update on the BoE’s and PRA’s intended use of the temporary transitional power provided for in the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (FSMA SI) and, at Section B, proposals for changes rules and Binding Technical Standards in light of the extension to the Article 50 period.

Section B is split into two parts:

  • PRA’s proposals in relation to the PRA Rulebook and BTS within the PRA’s remit that will be retained, or ‘onshored’, in UK law; and
  • proposals by the BoE, as FMI competent authority in relation to BTS under the Central Securities Depositories Regulation (CSDR).

Responses are requested by 18 September 2019.