Notification window for the temporary permissions regime now open
Posted: 7 January 2019 | Source: FCA
The temporary permissions 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. Find out more about the regime.
Notifying the FCA that you want to enter the regime
Firms will need to notify the FCA that they wish to enter the temporary permissions regime using the Connect system. Fund managers will also need to notify the FCA of which of their passported funds they wish to continue to market in the UK temporarily via Connect.
The notification window opens today (7 January 2019) and closes at the end of 28 March 2019. The FCA have also published a guide for Connect covering the notification process for firms (PDF) and investment funds (PDF).
There will be no fee for notifying for the regime 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.
Firms that do not notify the FCA that they wish to use the temporary permissions regime will, where they meet the relevant conditions, be subject to the financial services contracts regime. The FCA expect to consult on their approach to this regime shortly.
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.
Details of firms and investment funds with temporary permission will be shown on the FS Register.
Firms should take note of the following directions:
- firms which have passports under Schedule 3 to FSMA or Treaty firms under Schedule 4 to FSMA with or without a top-up permission (PDF)
- EEA authorised payment institutions and EEA registered account information service providers which before exit day are entitled to offer payment services in the United Kingdom in the exercise of a passport right (PDF)
- EEA authorised electronic money institutions which before exit day are entitled to offer electronic money issuance, redemption, distribution or payment services in the United Kingdom in the exercise of a passport right (PDF)
Fund managers should take note of the following:
- Temporary marketing permission regimes
- Draft direction under regulation 64(1) of the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 (PDF)
- Draft direction under regulation 78A(6) of the Alternative Investment Fund Managers Regulations 2013 (as amended, in particular by the Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations 2019 (PDF)