UK’s Financial Conduct Authority sets out rules for the end of Brexit transition period
The Financial Conduct Authority (FCA) based in the UK has outlined some Brexit transition rules for the financial sector. Firms that are not already in line with the changes will need to show that they have made efforts to comply by 31 December to avoid penalties, as stated by the FCA.
The FCA have also released details on how they intend to apply Temporary Transitional Power (TTP) rules following the end of the transition period, allowing firms to transition to the new regime. Where applicable, these rules will mean that firms and other regulated persons can continue to comply with their existing requirements for a limited period of time.
After the end of the transition period, onshored* legislation will apply. The FCA expects firms to use the duration of the TTP to prepare for full compliance with changes to UK regulatory obligations by 31 March 2022. Key changes are foreseen in areas such as These include transaction reporting, securitisation, some uses of credit ratings and security aspects of payment services.
* Onshoring is the process of amending legislation and regulatory requirements so that they work in a UK-only context, including EU legislation that will form part of UK law by virtue of the European Union (Withdrawal) Act 2018.