In or Out

The UK Government has announced a temporary permissions regime (TPR) for inbound passporting EEA firms and funds. The TPR will come into effect in the event of a hard Brexit, and will provide a temporary backstop to ensure that such firms and funds can continue their UK business with minimal disruption.

In order to take advantage of the TPR firms and funds need to make a notification to the UK Financial Conduct Authority (FCA) as appropriate before the end of 28 March 2019.  Once in the TPR the FCA will allocate a “landing slot” in which the firm or fund must submit its application for UK authorisation. The FCA anticipates that its first landing slot will be October to December 2019 followed by a further five landing slots with the last one closing at the end of March 2021. 

IFAC do advise a couple of inbound EEA firms, but they are not common in the retail sector, who largely prefer to rely on the exemptions outlined in earlier editions.

EU response

From the EU point of view, things are not quite so sympathetic.  

The TPR above is only relevant for firms that passport into the UK.  

The European Commission has so far not reciprocated with a similar regime and has instead continued to push for UK firms to submit an application for authorisation in the relevant Member State where they wish to conduct business.