Preparing for a “no deal” Brexit
The FCA opened its “notification window” this week for firms and fund managers to notify the regulator that they wish to enter the FCA’s Temporary Permissions Regime (TPR). Any inbound passporting EEA firms and EEA-domiciled investment funds that market into the UK under a passport now have up until the end of 28 March 2019 to notify the FCA that they wish to enter into the regime. Once the notification window has closed, firms that have not submitted a notification will not be able to use the regime.
Many EEA firms conduct regulated activities in the UK and the TPR is a regime that will be available in the event of a “no-deal Brexit”.
The regime will allow inbound firms to continue operating in the UK within the scope of their current permissions for a limited period after exit day (when they will lose their current passporting rights) while seeking to obtain full UK authorisation. It will also allow funds with a passport to continue marketing in the UK on a temporary basis. Fund managers therefore need to notify the FCA of which of their passported funds they wish to continue to market in the UK.
These measures were announced in December 2017 by the UK government as part of its planning for a “no deal” Brexit.