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...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

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

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