Brexit and financial services—the financial services contracts regime (FSCR)
Brexit and financial services—the financial services contracts regime (FSCR)

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

  • Brexit and financial services—the financial services contracts regime (FSCR)
  • Background and legislative framework
  • FCA policy development
  • BoE/PRA policy development
  • Overview of the financial services contracts regime
  • Who can use the financial services contracts regime?
  • Contractual run-off (CRO)
  • Which rules are applicable to firms in CRO?
  • Supervised Run-Off (SRO)
  • Firms with MiFID II tied agents
  • More...

This Practice Note considers the financial services contracts regime (FSCR), which will come into force at the end of the implementation period following the UK’s withdrawal from the EU. The FSCR will automatically apply toEEA passporting firms that have pre-existing contracts in the UK which would need a permission to service, if those firms do not notify the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) that they wish to enter the temporary permissions regime (TPR), or if they do not secure full UK authorisation and leave the TPR. The regime will allow those firms to continue to service UK contracts entered into before the end of the implementation period or before exiting the TPR for a limited period, provided that they meet the conditions of the FSCR.

The European Union (Withdrawal) Act 2018, as amended by the European Union (Withdrawal Agreement) Act 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

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