Information for firms during the Brexit implementation period - UK's FCA
Publish date: 07 February 2020
Issue Number: 106
Diary: CompliNEWS
Category: Brexit
On 31 January 2020 at 11pm the UK left the European Union (EU) and entered into an implementation period, which is due to last until 31 December 2020. During the implementation period, EU law will continue to apply. Firms and funds will continue to benefit from passporting between the UK and EEA. Consumer rights and protections derived from EU law will also remain in place.
What this means for the Financial Conduct Authority (UK)
'We will be working hard to ensure that we and the UK financial services sector are prepared for the end of the implementation period. This includes continuing to engage with the UK government and other UK regulators.
We will also continue to work with the European Supervisory Authorities, national authorities in member states and all European policymakers on shared issues and priorities.'
What firms need to consider
Passporting allows firms authorised in an EEA state to conduct business within other EEA states based on their ‘home’ member state authorisation. Passporting will continue during the implementation period.
But firms should not expect current passporting arrangements to continue after the implementation period ends. This means that, as things stand, you should anticipate a range of possible scenarios for the end of the implementation period, including that the activities you conduct might not be covered by arrangements agreed between the UK and the EU.
As things develop during the course of the year, you will need to consider how the end of the implementation period will affect you and your customers, and what action you may need to take to be ready for 1 January 2021. We will provide further information as and when there are material developments, including about what we expect from firms.
Consumers' rights remain the same during the implementation period
During the implementation period, EU law continues to apply until 31 December 2020. The current protections and rights you have for your financial products and services won’t change due to the implementation period.
