In two papers, published earlier this week, the UK’s Financial Conduct Authority (FCA) has outlined contingency plans in case Britain leaves the European Union without a deal next spring.
The plans reveal that in a worst case scenario, where on March 29th UK leaves EU without a deal, the FCA will grant temporary permissions to all EU and European Economic Area(EEA) regulated companies to continue to operate in the UK for 2 more months, in which those companies will have the opportunity to talk with FCA and get FCA licenses.
The consultation period will be granted to all companies, coming under FCA jurisdiction like investment funds, electronic money institutions, payment providers, fund managers and of course EU forex brokers.
“The FCA is planning to be ready for a range of scenarios. In the event the UK leaves the EU in March 2019 without an implementation period, we have a robust regulatory regime from day one.”, said Nausicaa Delfas, Executive Director of International, and a member of the Executive Committee at the FCA . “We welcome engagement from across the sector, as we continue with our preparations for Brexit”, she added.
The Temporary Permissions Regime paper explains how EEA companies and investment funds can continue to operate in the UK.
FCA says that it wants to preserve existing arrangements as far as possible, but that in some cases companies will have to join additional schemes, run by UK institutions, such as the UK Financial Services Compensation Scheme (FSCS).
The second paper elaborates on amendments to the FCA’s Handbook and Binding Technical Standards (BTS).
Both papers are available on the FCA website.