The FCA's approach to Brexit
In June 2018, the regulator set out its role in and approach to preparing for Brexit.
Two consultation papers were published by the Authority in October, and in November, it launched a further consultation, focused principally on a number of amendments to its Handbook and Binding Technical Standards (BTS).
The FCA updated its advice to firms on 13 December, and on 7 January, announced that the notification window for the temporary permissions regime was open. On 8 January, it published two more Brexit consultations.
2. Firms subject to reporting obligations under European Market Infrastructure Regulation (EMIR). From exit day, all firms and central counterparties who enter into derivatives transactions in scope of EMIR will be required to report into a UK-registered trade repository.
3. EEA Issuers that have securities traded or admitted to trading on UK markets. EEA entities that have securities admitted to trading or traded on UK markets will be required to submit information to the FCA and disclose certain information to the market from exit.
4. Investment firms subject to the Bank Recovery and Resolution Directive (BRRD) and that have liabilities governed by the law of an EEA State.
5. EEA firms intending to use the market-making exemption under the Short Selling Regulation. Any firm wishing to do this will be required to join a UK trading venue and notify the FCA of their intention to use the market maker exemption 30 days ahead of their intended use.
6. Firms intending to use credit ratings issued or endorsed by FCA-registered credit ratings agencies after exit day. After exit, all ratings will need to be issued or endorsed by a credit ratings agency (CRA) established in the UK and registered with the FCA for them to be eligible for regulatory use.
7. UK originators, sponsors, or securitisation special purpose entities (SSPEs) of securitisations they wish to be considered simple, transparent, and standardised (STS) under the Securitisation Regulation. UK originators or sponsors will need to direct notifications to the FCA from exit day for these securitisations.
Nothing in this document should be treated as an authoritative statement of the law. Action should not be taken as a result of this document alone. We make no warranty and accept no responsibility for consequences arising from relying on this document.