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FCA to take ‘pragmatic’ approach to Brexit day preparation

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  • 11/10/2019
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FCA to take ‘pragmatic’ approach to Brexit day preparation
The Financial Conduct Authority (FCA) has said it will be taking a “proportionate and pragmatic” approach to supervising the reporting of regulated firms around 31 October, the day the UK is set to leave the European Union.

 

The regulator also laid out steps firms should undertake to get ready for a no deal scenario, including the requirement to share European Market Infrastructure Regulation (EMIR) reports with UK authorities. 

It said firms must also be ready to receive reports from UK reporting counterparties on this. 

Furthermore, FCA-registered trade repositories must ensure the migration of outstanding trades and historic EMIR data, and that the details of any trades newly concluded, terminated or modified by UK reporting counterparties on 1, 2, and 3 November 2019, are embedded in their systems. These need to be available for UK authorities by 4 November 2019.     

 

Passporting will end

The FCA also said passporting would end if the UK leaves the EU without a deal, so any European Economic Area (EEA) passporting firm wishing to continue operating in the UK will need to notify the FCA by 30 October that they wish to enter the Temporary Permissions Regime (TPR).  

Fund managers have until 16 October 2019 to inform the FCA if they want to make changes to their existing notification.  

After exit, firms who notified the FCA of their intention to use the TPR will be contacted and provided with a landing slot when they will need to submit their application for full UK authorisation 

On MiFID transaction reporting, which is a crucial part of the FCA’s approach to market oversight, firms that are not able to comply fully with the regime at the time of the UK’s withdrawal from the EU will need to be able to back-report missing, incomplete or inaccurate transactions.  

The regulator said this should be competed as soon as possible after 31 October 2019. 

Nausicaa Delfas, executive director for international at the FCA, said: “The FCA has been preparing to ensure UK financial services are well placed if the UK leaves without a deal.  

“Today, we have set out steps certain firms need to take – it is important that firms are as prepared as possible if there is a no-deal exit, and that they are aware of what they need to do.”

 

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