Brexit and financial services—the temporary permissions regime (TPR)
Brexit and financial services—the temporary permissions regime (TPR)

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Brexit and financial services—the temporary permissions regime (TPR)
  • Background and legislative framework
  • FCA policy development
  • BoE/PRA policy development
  • Which firms and funds can use the temporary permissions regime?
  • Firms which can use the regime
  • Firms with MiFID II tied agents
  • Credit institutions and insurers
  • Gibraltar-based firms
  • Other firms which will not be able to use the TPR
  • More...

This Practice Note considers the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)/Bank of England (BoE) temporary permissions regime (TPR), which will come into force at the end of the implementation period following the UK’s withdrawal from the EU. The TPR will allow European Economic Area (EEA) passporting firms and funds to continue to operate in the UK for a limited period of time after the implementation period has ended, to give them time to apply for full UK authorisation or recognition.

The European Union (Withdrawal) Act 2018 (EU(W)A 2018), as amended by the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A 2020), makes provision for the ratification and implementation in domestic law of the Withdrawal Agreement between the UK and the EU. The Withdrawal Agreement sets out the arrangements for the UK’s withdrawal from the EU. It includes a transition period (or, to use the UK government’s phraseology, an ‘implementation period’) beginning on 31 January 2020 and ending on 31 December 2020 (IP completion day). During the implementation period, the UK will be treated, for most purposes, as if it were still an EU Member State with access to EU markets on current terms and, importantly, maintaining current passporting and Treaty rights.

If the UK and the EU fail to reach an agreement on financial services by IP completion day, the passporting regime will

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