FCA issues statement on Brexit implementation period

The UK will leave the European Union on 31st January 2020 at 11pm, entering into an implementation period which is due to last until 31st December 2020, and during which time, EU law will continue to apply. The UK’s Financial Conduct Authority has said that during this time firms and funds will continue to benefit from passporting between the UK and EEA; and that consumer rights and protections derived from EU law will also remain in place.

There will therefore be no changes to the reporting obligations for firms, including those for MiFIR transaction reporting, under EMIR, and for CRAs, which will continue in line with existing EU regulatory requirements.

Chief executive of the Financial Conduct Authority, Andrew Bailey said that the work the FCA has undertaken, along with government and the Bank of England, ensured that the financial services sector was one of the best prepared industries for “any of the possible Brexit outcomes”.

“The implementation period gives firms a period of certainty while negotiations are continuing on our future relationship with the EU.

“The FCA intends to use this time to work with government, the Bank of England, firms and other regulators to ensure the financial services industry is ready for the end of 2020. We will continue to keep firms and consumers updated on any changes that will impact them.”

As things develop during the year, all financial services firms should consider how Brexit will impact their business and what action they need to take to be ready for 1st January 2021 to minimise risks to customers.

The windows for EEA firms to notify the watchdog that they want to use the Temporary Permissions Regime is now closed.

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