- Posted by Michael McKee
- On 8 January 19
- Brexit, FCA, Financial Services, Temporary Permissions Regime
The notification window to enter the Temporary Permissions Regime (TPR) opened on 7 January 2019 and will close at the end of 28 March 2019. In the event of a ‘no deal’ Brexit, the TPR allows inbound passporting EEA firms and investment funds to continue carrying out regulated business in the UK for a limited period of time, while working towards obtaining authorisation or recognition. You can read more about the TPR here.
To benefit from the TPR firms and fund managers must notify the Financial Conduct Authority (FCA) using the FCA Connect system. The FCA has published detailed guidance explaining the notification process for firms and investment funds. Interested parties will not be required to pay any fees for notifying the FCA.
Eligible entities that fail to notify the FCA within the above timeframe will not be able to enter the TPR. ‘Firms and fund managers should not wait for confirmation of whether there will be an implementation period before they submit their notification,’ the FCA highlights. This means that firms outside TPR will be subject to the financial services contracts regime, provided they meet the relevant requirements. Fund managers will not be able to use the TPR for funds they have not notified, the only exception being new sub-funds of EEA UCITS that are in the TPR on exit day. The FCA will allow these new sub-funds to enter the TPR also after exit day.
Michael McKee has over 20 years’ experience in the financial services sector having practised at major international law firms in London.