FCA Warn of 'Tough, Assertive Approach’ to Brexit TPR Landing Slot Authorisations
The FCA recently warned that it will be take a "taking a tough, assertive approach to those firms that want to continue to operate in the UK continue to meet our standards."
This caution was issued to firms operating under the FCA’s Temporary Permissions Regime (TPR) during a talk by Executive Director for Markets, Sarah Pritchard, at the regulator's annual public meeting on 28 September 2021.
In the run-up to the UK leaving the European Union, the FCA introduced TPRs to European Economic Area (EEA) based financial services firms that had previously been allowed to offer their investment services in the UK under the passporting regime, without the need for FCA authorisation.
These firms are now being contacted about their Brexit landing slots, sometimes at very short notice. The first landing slots were issued in July 2021 and the subsequent five slots run each quarter thereafter. The FCA has indicated all firms will receive their landing slots by the end of 2022.
Pritchard warned “We have landing slots that are open in various different phases for firms that are applying for UK authorisation and where firms either don't meet our standards or no longer wish to continue to have the UK regulated, we will be taking steps to remove their permissions”.
In short, this means firms that miss their landing slot or do not complete their application correctly do not just go to the back of the authorisations queue, they are actually prevented from initiating further regulated activity in the UK.
Anyone expecting TPR authorisations to be expedited in some way, a sort of authorisation-lite process if you like, will be disappointed. EEA based firms who may have been passporting their services into the UK for years are effectively back to square one in terms of proving that they meet the necessary standards.
It’s vital that you start planning now as putting together a good FCA application is not straightforward and likely to take longer than the three-month window.
If you have questions for us on any of the topics highlighted here and how we can help you, please contact our Brexit Implementation Team to request a meeting.
Frequently asked questions: providing essential guidance for firms wishing to move to full authorisation subject to being invited by the FCA and to navigate this challenge within the tight timeframe. Download now
On-demand webcast: outlining the TPR/landing slot process, key elements of a successful application, Will the FCA favour applications from subsidiaries over branches, and how the UK’s regulatory regime differs from EEA jurisdictions. Listen on-demand now
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