FCA sets out hard Brexit proposals

The FCA will remove references to EU institutions in its Handbook, and says it is proposing 'other types of changes that reflect the UK’s new position outside of the EU'.

The regulator is also seeking feedback on whether compliance with changes to regulatory requirements by exit day "would be a particular challenge for firms".

The FCA is also consulting on its proposals for the Temporary Permissions Regime.

The Temporary Permissions Regime will be available from 29 March 2019 if the UK leaves the EU without an implementation period. It sets out how EEA firms and investment funds can continue to carry on regulated business in or into the UK for a limited period after Brexit while seeking full authorisation in the UK.

The FCA says it has taken a "proportionate approach to enable firms to comply with its requirements from day one", aiming to preserve existing arrangements as far as possible for both firms and consumers.

In some cases, the FCA says firms may be required to join additional schemes run by UK institutions to protect UK consumers, for example the FSCS.

Nausicaa Delfas, executive director of international at the FCA, said: "The FCA is planning to be ready for a range of scenarios. Today we are publishing two consultation papers to ensure that in the event the UK leaves the EU in March 2019 without an implementation period, we have a robust regulatory regime from day one, and to ensure a smooth transition for EEA firms and funds currently passporting into the UK.

"This is consistent with our aim to provide certainty and confidence for firms operating in the UK. We welcome engagement from across the sector, as we continue with our preparations for Brexit.”