With just one month to go until the end of the transition period, the Financial Conduct Authority has warned firms that it expects them to ensure the right outcomes for their customers, and provide timely communications to enable them to make appropriate decisions.

When the transition period ends at 23:00 on 31st December, firms will need to be prepared for a number of changes to the regulatory environment in which they operate. EU laws will no longer apply and passporting will end.

Nausicaa Delfas, executive director, international at the FCA, said: “With just a month to go until the end of the transition period, firms need to make sure they are prepared for the end of passporting, and for the new financial services landscape after the end of the transition period.

“To help minimise disruption, we have on-shored EU legislation and established temporary regimes to allow non-UK firms and funds to operate in the UK after 31 December 2020.

“'We remain committed to open markets, international co-operation and high international standards of regulation.”

The FCA is making use of the Temporary Transitional Power to provide them with more time to comply with a large number of the changes. However, there are also key requirements that firms need to comply with by 1st January 2021.

Passporting will end on 31st December 2020: firms that intend to carry on providing services currently covered by a passport will need to ensure they will be able to do so after the end of the transition period

The FCA has set out in detail considerations to help firms understand if or how they will be affected and what action they may need to take. The FCA Handbook has also been updated with changes to regulatory requirements that will apply to firms. The temporary permissions regime will enable relevant firms and funds which passport into the UK to continue operating in the UK providing that they notify the FCA no later than 30th December.

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