Any lingering doubt that the UK really has left the EU will soon been banished when the transition period comes to an end on 31 December. In anticipation of the many changes this entails, the FCA has published a new version of its FCA Handbook reflecting the rules that will apply thereafter.
The regulator has also clarified which rules will apply immediately from the start of 2021 (see below) and where the FCA has applied the discretionary flexibility over timings allowed by its Temporary Transitional Power (TTP) to give firms longer to prepare.
A newly published navigational handbook explains how you can view the post-Brexit version of the FCA handbook online.
Firms and individuals have only until the end of the year to ensure they are fully compliant with the new rules in all of the following areas:
- MIFID II transaction reporting
- EMIR reporting obligations
- SFTR reporting obligations
- Certain requirements under MAR
- Issuer rules
- Contractual recognition of bail-in
- Client Assets Sourcebook (CASS) requirements
- Market-making exemption under the Short Selling Regulation
- Use of credit ratings for regulatory purposes
- Securitisation
- Electronic commerce EEA firms
- Mortgage lending after the transition period against land in the EEA
- Payment Services – strong customer authentication and secure communication.
In many other areas, however, the FCA will use TTP to allow regulated entities to continue complying with the current rules, rather than the new ones, for anything up to an additional 16 months. But by 31 March 2020, the regulatory transition will be complete.
If you would like help understanding how the post-transition regulatory changes will affect your business, and what you need to do to remain compliant, please call us on 01925 765777 to speak to one of our compliance experts, or email info@ukgigroup.com.