FCA confirms final no-deal Brexit rules for firms

The package of documents contains the majority of the final instruments and guidance, following the publication of near-final rules in February.

The final instruments are largely unchanged from February. The most significant change is that the instruments now commence on ‘exit day’, rather than 11pm on 29 March.

Most of the rules have been made under powers given to the FCA under the EU Withdrawal Act. They have been approved by the Treasury, so the FCA can now make them final.

The powers allow the FCA to temporarily waive or modify obligations on UK-supervised persons where those obligations have changed as a result of the EU Withdrawal Act.

This gives regulated persons time (in most cases 15 months from exit day) to adapt to changes to UK financial services regulation resulting from Brexit.

The FCA has today published the majority of its final transitional directions and guidance for using the transitional power.

It has identified three areas where it has made amendments to the near-final directions published in February. These changes relate to UK managers of EEA UCITS funds, the application of the Client Assets sourcebook (CASS) to activities carried on from an EEA branch, and the distance marketing provisions.

The FCA says it will publish information about technical standards under EU legislation on capital requirements, banking resolution and financial conglomerates later once the PRA have published similar information.

The regulator has also extended the notification window for firms who wish to enter the TPR until the end of 11 April 2019.

Further information on how regulated firms could be affected by Brexit has been published on the FCA website. This includes information specific to the banking sector, UK‑based pensions and retirement income firms, general insurance firms, retail firms, wholesale banks, markets and asset managers operating in the UK.

Nausicaa Delfas, executive director of international at the FCA, said: “The documents published today are the final stages in our preparations in the event that the UK leaves the EU without an implementation period: they ensure that firms have certainty of the financial regime they will be operating within, and so can plan accordingly to meet the needs of their customers.”