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FCA continues 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 will help ensure we have a functioning regulatory framework in place. FCA is working to ensure as smooth a transition as possible.
Financial services contracts regime
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:
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.
The consultation period is 3 weeks. Please send your comments by 29 January 2019.
Securitisation consultation
FCA will regulate securitisation repositories after the UK leaves the EU on 29 March 2019. It is consulting on proposals for recovering the costs of regulating securitisation repositories.
The FCA will consider comments before February the 2nd and publish their feedback, along with their rules, in their Handbook Notice in March 2019.
Financial services contracts regime