FCA publishes further preparations for no-deal Brexit

Its new consultation paper focuses on a range of Handbook and BTS amendments which were not included in earlier consultation papers.

The Handbook amendments include its approach to fees following the loss of passporting rights.

Currently, entities operating in the UK under a passport may benefit from a discounted fee to reflect that regulation of them is limited to that of ‘host’ regulator. As passporting will no longer be possible, and the concepts of ‘home’ and ‘host’ regulator will cease, the FCA confirmed that discounting of fees will also cease.

Other proposed Handbook changes relate to the Temporary Permissions regime, including applying the Senior Managers and Certification Regime and FOS and FSCS cover to EEA branches.

The consultation is open until 21 December 2018 and responses can be submitted via the FCA’s online form, by email or in writing.

Nausicaa Delfas, executive director of international at the FCA, said: “The FCA is preparing for a range of scenarios. We have published further proposals to prepare for the possibility the UK leaves the EU in March 2019 without an implementation period.

“Our aim is to provide certainty and confidence for firms operating in the UK. These proposals will ensure we have a robust regulatory regime from day one, and a smooth transition for EEA firms and funds currently passporting into the UK.

“We welcome continued engagement from across the sector on these preparations for Brexit.”