Brexit and Passporting  

YOUR COMPLIANCE MATTERS:   Brexit and Passporting

Relevance:                   All firms trading in the EEA.

Action required:           Note FCA confirmation that Passporting permitted post 31.01.20 until the end of the Implementation period.

On the 16th January, the FCA published its usual ‘Regulation round-up’ which included the following from Nausicaa Delfas, Executive Director of International at the FCA:

‘The Withdrawal Agreement is making its way through the stages of parliamentary approval. Once passed, the UK will leave the EU on 31 January 2020 and enter an implementation period until 31 December 2020.

As a result, we are making changes to our Brexit implementation activities. We have contacted relevant, affected firms and updated our webpages. More information can be found in the Brexit section

During the implementation period, there will be continuity because EU law will still apply in the UK, and passporting (the ability of UK authorised firms to conduct particular activities in the EEA without local authorisation) will be maintained. New EU legislation that takes effect before the end of the implementation period will also apply to the UK.

Over the next year, we will work with the Government to ensure that the UK financial services sector is prepared for the end of the implementation period. As things develop during this year, you will need to consider how the end of the implementation period may affect you and your customers, and what action you may need to take to be ready for 1 January 2021.

Check our website for the latest updates.’

So, assuming Parliament passes the Withdrawal Agreement, firms that currently advise clients in the EEA, and have a Passport do so, will be able to continue while we sort out a final deal with the EEA. The FCA has made it clear that firms still need to think about the potential impact on them – they may just have a little longer to do so.