UK Finance response to FCA CP19/2: Brexit and contractual continuity

As in relation to the FCA's proposals regarding the temporary permissions regime (TPR), as set out in CP18/29 on the temporary permissions regime for inbound firms and funds (to which we submitted our response (the TPR Response)) and CP 18/36 on proposed changes to the Handbook and Binding Technical Standards - second consultation, we consider the policy approach underlying the FSCR, as set out in the CP, to be appropriate. In addition to the recognition of the importance of transitional relief, the further recognition as to the importance of providing the means for EEA firms (including EEA electronic money institutions (EMIs) and payment institutions (PIs)) which do not take advantage of the TPR (whether at exit date or at a later stage upon exit from the TPR) to run-off their existing contracts with UK customers and wind down their UK business in an orderly manner, is most welcome. Such measures are crucial in contributing to the FCA's strategic objective that regulated markets function well.

Area of expertise: