top of page

The prolonging of the post-Brexit licensing regime is rejected by the UK FCA

The leading financial regulator in the UK has officially ruled out any extension of its temporary post-Brexit licensing regime beyond the current year. The Financial Conduct Authority (FCA) is committed to resolving the outstanding 116 cases within the next two weeks.


Introduced in 2018, the FCA's "temporary permissions regime" provided companies using their European licenses to operate in the UK a grace period of up to three years after Brexit to make alternative arrangements. Emily Shepperd, Chief Operations Officer at the FCA, stated that the agency would not extend this regime beyond December, emphasizing the FCA's determination to conclude the pending cases.


Shepperd revealed that out of the initial 1,475 banks, insurers, asset managers, and other organizations on the register, only 116 remained. All these cases are expected to be addressed by the end of the year. Companies in the temporary permissions regime had various options for their future, including running off their businesses over five to ten years, applying for full authorization in the UK, or relocating activities to another fully licensed company within their group.


The FCA cautioned that the temporary permissions regime was intended for those intending to "operate in the UK in the long term," and companies not meeting FCA standards could be removed from the regime. Shepperd reported that among the remaining 116 companies, three had live applications for full authorizations, six were still confirming their plans, and 80 were preparing to leave the UK or begin run-off.


The remaining 27 companies are dual-regulated by the FCA and the Bank of England's regulatory arm, with authorization falling under the BoE's jurisdiction. The BoE declined to comment.


Contacts


If you require assistance in relation to the above and/or would like to discuss anything further, please do not hesitate to contact info@act.london or your usual A.C.T. contact.

7 views

Recent Posts

See All

Comentarios


bottom of page