As previously reported, the UK government and the FCA are proposing to implement a Temporary Permissions Regime (TPR) for “inbound” European Economic Area (EEA) firms and funds in the event of a “no deal” Brexit. A TPR is proposed both for firms and funds authorised in an EEA country, such as Ireland, and providing investment services or marketing funds to UK customers under EU passporting arrangements prior to the date of the UK’s exit from the EU. The stated intention is to allow such inbound firms and funds to continue operating in the UK within the scope of their current passports for up to three years after a “no deal” Brexit while they apply for full (permanent) UK authorisation or recognition.
On 9 November, the FCA issued a direction under the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 to the effect that EEA firms carrying on regulated activities in the UK under passporting arrangements must notify it if they intend to obtain a deemed permission or variation under the TPR.
Notifications must be made on the FCA’s Connect system during the period beginning at 9 am on 7 January 2019 and ending on 28 March 2019.
Read: The FCA’s direction