The Financial Conduct Authority has started a consultation process, whose main purpose is to clarify on the supervision and authorization of international companies currently operating in the UK, or with UK branches. This comes at a very sensitive time, as the regulator is battling with the expected Brexit finalization, which is expected to be on December 31.
The British watchdog stressed that these implementations will be focused on European Economic Area firms (EEA) that continue to have operating branches in the UK, or who are seeking authorization in the country.
Many companies are endeavoring to circumvent the unpredictability of a post Brexit UK by establishing new subsidiaries, yet others are still relying on the FCA to come up with a proper plan for conduct. Over 1500 firms are registered in the Temporary Permissions Regime; all of these will be seeking authorized sanctuary in the UK after 31st December.
However, the FCA has reminded these firms that there are standards to follow, as well as future frameworks yet to be introduced that must be complied with.
Technically the UK is no longer in the EU, yet the nation is still in the transition period, which is set to end on 31st December. Until then, EU companies operating in the United Kingdom are still bound by the passporting rights of the Markets in Financial Instruments Directive (MiFID).