Are you ready for life after passporting?

The FCA has issued a press release reminding firms to be ready for end of the transition period.

With less than a month to go until the transition period expires at 11pm on 31 December, the regulator has joined HMG in urging firms to be ready – without being able to say definitively exactly what they should be ready for.

Uncertainties clearly persist, but we can at least be fairly confident that, come 1 January 2021, EU law will cease to apply and passporting will come to an end.

To help firms prepare for this, a considerable volume of relevant information has been posted on the FCA website, identifying the key issues firms need to have considered.

In particular, you need to be aware that – although the regulator is making use of the temporary transitional power to allow some extra time to comply with many of the upcoming changes, there are some key requirements that must be complied with immediately from 1 January.

It’s also essential – with passporting coming to and end this year – that you make alternative arrangements if you intend to continue providing services currently covered by the passporting system.

Along with the information and guidance recently added to the FCA website, the FCA Handbook has been updated to reflect the impending new regulatory requirements. 

The temporary permissions regime (TPR) will enable firms who passport into the UK to continue operating in the UK, provided they notify the FCA no later than 30 December.

The FCA has also warned that firms proposing to cease offering services previously covered by a passport take/have taken steps to communicate this intention clearly and in good time – and to ensure the right outcomes for their customers.

FCA executive director Nausicaa Delfas said ‘to help minimise disruption, we have onshored EU legislation and established temporary regimes to allow non-UK firms and funds to operate in the UK after 31 December 2020,’ adding that ‘we remain committed to open markets, international co-operation and high international standards of regulation.’

If you would like to know more about life after passporting, or any other compliance related issue, please contact a member of our expert team on 01925 765777, or email us at info@ukgigroup.com.

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