FCA reminds financial firms of their responsibilities after Brexit

With the UK having pulled out of the EU on New Year’s Eve, the nation’s financial regulator has reminded companies about the new red tape they must navigate.

Brexit came into fruition at 11pm on December 31, ending the passporting rights between the UK and the EEA.

However, the Financial Conduct Authority (FCA) has reminded regulated firms that the temporary permissions regime has now come into effect, giving businesses access to passporting rights if they have notified the City watchdog about it.

Although, it is important to remember that these rights are only temporary as they seek new permission from the FCA.

The regulator also stated that the new financial services contracts regime works in a similar way for firms not in the temporary permissions regime to continue to service UK client, enabling them to “conduct an orderly exit from the UK market now that the transition period has ended.”

“The extent to which UK firms can continue to provide services to customers in the EEA depends on local law and local regulators’ expectations,” the FCA said in a statement.
“We expect UK firms to take the steps available to them to make sure they act consistently with these local laws and expectations. We are clear that firms’ decisions need to be guided by obtaining appropriate outcomes for their customers, wherever they are based. Firms should also be prepared for the regulatory changes that have come into force.”

The FCA has now become the regulator of UK-registered and certified credit rating agencies, meaning that any UK legal entity that wishes to issue credit ratings publicly or by subscription will now need to be registered or certified with the City watchdog.

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