Brexit: British regulator publishes update on passporting during implementation period
28 Mar 2018

Firms and funds will continue to benefit from passporting between the United Kingdom and EEA during the implementation period that will apply following the UK’s withdrawal from the European Union, according to the Financial Conduct Authority.

The implementation period is intended to operate from 29 March 2019 until the end of December 2020, during which time European Union law would remain applicable in the UK.

“Obligations derived from EU law would continue to apply and firms must continue with implementation plans for EU legislation that is still to come into effect before the end of December 2020,” the FCA stated.

“Consumer rights and protections derived from EU law would also continue to apply.”

It explained that n December 2017, the government announced plans for a Temporary Permission Regime if necessary, which would help passporting firms and funds to conduct business that falls within the scope of their existing permissions and mitigate risks associated with a sudden loss of permission.

“Subject to HM Government’s legislation setting up the regime, our expectation is that firms and funds that will be solo-regulated by the FCA will need to notify us of their desire to benefit from the regime,” it added.

“Notification will not require submission of an application for authorisation. We will set out further details on these proposals later in the year.”

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