FCA opens window for notifications for UK Temporary Permissions Regime11 January 2019
The Financial Conduct Authority (FCA) has opened the window for notifications for the UK temporary permissions regime (TPR).
The regime will allow EEA-based firms currently passporting into the UK to continue new and existing regulated business within the scope of their current permissions in the UK for a limited period, while they seek full FCA authorisation, if the UK leaves the EU on exit day without an implementation period in place. It will also allow EEA-domiciled investment funds that market in the UK under a passport to continue temporarily marketing in the UK.
Firms will need to notify the FCA that they wish to enter the temporary permissions regime. Fund managers will also need to notify the FCA which of their passported funds they wish to continue to market in the UK temporarily. All notifications should be made using the FCA’s Connect system.
The notification window opened on 7 January 2019 and closes at the end of 28 March 2019. There will be no fee for notifying for the TPR and firms and fund managers should not wait for confirmation of whether there will be an implementation period before they submit their notification.
Firms that have not submitted a notification will not be able to use the regime, and will be unable to continue accessing the UK market on the same basis as currently. Firms that do not notify will, where they meet the relevant conditions, be subject to the Financial Service Contracts regime. In addition, once the notification window has closed, fund managers that have not submitted a notification for a fund will be unable to use the temporary permissions marketing regime for that fund. They will not be able to continue marketing that fund in the UK on the same basis as they did before exit day. (The only exception to this is for new sub-funds of EEA UCITS that are in the temporary permissions marketing regime on exit day. It is possible for such new sub-funds to enter the temporary permissions marketing regime after exit day.)
More information about the temporary permissions regime is available from the FCA through this short video or website. The FCA has also published a guide covering the notification process for firms and investment funds.