Brexit uncertainty forces UK FCA to re-open the TPR

In light of the ongoing Brexit discussions, the UK Financial Conduct Authority (FCA) has decided to re-open the temporary permissions regime (TPR) as from 30 September 2020. As the FCA continues to plan for all possible Brexit scenarios, including a no-deal Brexit, it encourages firms and fund managers to prepare accordingly and apply for the TPR before the end of the transition period (31/12/2020).

As a reminder, in December 2017 the UK Government announced the introduction of a temporary permissions regime for inbound passporting EEA firms and investment funds. As a no-deal Brexit at the end of the transition period would mean the loss of the passport regime, the TPR will provide a backstop and ensure that firms and investment funds can continue their business with minimal disruption.

Once re-opened, the TPR will allow EEA-based firms passporting into the UK to continue new and existing regulated business within the scope of their current permissions in the UK for a limited period, while they seek full FCA authorisation. It will also allow EEA-domiciled investment funds that market in the UK under a passport to continue marketing in the UK temporarily.

The re-opening of the TPR will also be an opportunity for firms and fund managers to update previously submitted notifications if necessary. Firms and fund managers that submitted a TPR notification last year will need to assess whether the information in that TPR notification is still up to date. EEA firms providing services on a cross-border basis under the ‘services passport’ in the UK will need to verify whether all of the services they currently provide were indicated in their previous TPR notification. If the scope has changed, they will need to amend the TPR notification. 

The same is true for EEA investment funds marketing in the UK. If the scope of funds and/or sub-funds currently marketed in the UK differs from what was stated in their last TPR notification, they will need to update it to reflect the scope of the funds/sub-funds currently distributed in the UK.

The FCA will issue additional information in September, and your Arendt team will continue to provide you with updates as the news evolves.