The Financial Conduct Authority (FCA) has published two further consultations to prepare for the UK’s exit from the EU. The UK regulator have published proposals to introduce the financial services contracts regime (FSCR) as well as proposed fees for regulating securitisation repositories.
The FCA continue to plan for a range of outcomes to the Brexit negotiations. One of these outcomes is the UK leaving the EU on 29 March 2019 without an implementation period.
The proposals we have published today will help ensure we have a functioning regulatory framework in place. The FCA are working to ensure as smooth a transition as possible. By consulting, their aim is to provide certainty and confidence for firms operating in the UK.
Financial services contracts regime
The FCA has set out proposals to implement the financial services contracts regime (FSCR) so that EEA firms can fulfil their existing contractual obligations in the UK.
The FSCR allows for the continuity of existing contracts after exit day for EEA firms which either:
- do not enter the temporary permissions regime, or
- exit the regime without full UK authorisation
Allowing contracts to continue is important for protecting UK consumers and minimising market disruption.
The FSCR does not allow EEA firms to take on new business after 29 March 2019. Similarly, EEA-based managers, depositaries and trustees of UK authorised funds cannot continue to manage or provide services to these funds after exit day under FSCR. These firms and fund managers will need to enter the temporary permissions regime.
We will regulate securitisation repositories after the UK leaves the EU on 29 March 2019. We are consulting on proposals for recovering the costs of regulating securitisation repositories.