FCA Welcomes Agreement on Terms of Brexit Implementation Period; BoE Announces “Dear CEO” Letters and PRA Policy Statements
On March 28, the UK Financial Conduct Authority (FCA) published a statement on the withdrawal of the United Kingdom from the European Union (Brexit) following UK-EU agreement in relation to aspects of the transition period—notably the end date for the transition period of December 31, 2020.
As previously discussed, the FCA intends that firms and funds will be able to continue to provide cross-border services into the United Kingdom from other European Union/European Economic Area jurisdictions (passporting) during the transition period, subject to notifying the FCA of their desire to do so.
The FCA also confirmed that it is continuing to work with HM Treasury and the Bank of England/Prudential Regulation Authority (PRA) to make certain that the UK legal and regulatory framework functions regardless of Brexit outcome.
On the same day, the Bank of England (BoE) also issued a press release updating its regulatory approach in preparing for Brexit. In the form of updates following the March 2018 European Council, the press release announced the publication of:
a “Dear CEO” letter from Sir Jon Cunliffe, Deputy Governor Financial Stability, on the operation of non-UK central counterparties in the United Kingdom after Brexit;
a “Dear CEO” letter from Sam Woods, Deputy Governor Prudential Regulation and PRA Chief Executive Officer, on firms’ preparations for Brexit; and
PRA policy and supervisory statements concerning its approach to branch authorization and supervision in relation to international banks and insurers.
The statement is available here.
The press release, which includes links to each document described above, is here.