European firms that want to remain in the temporary permissions regime (TPR) must meet the Financial Conduct Authority’s (FCA) standards to continue operating in the UK.
The regime was designed by the regulator to ensure European firms operating in the UK via a passport when the Brexit transition period ended could continue to operate temporarily while they sought full authorisation in the UK.
According to the regulator, the TPR should only be used by firms who want to operate in the UK in the long-term and meet its standards.
Firms may be asked to stop undertaking new business or could be removed from the TPR if they miss their ‘landing slot’, fail to respond to mandatory information requests, have no intention in applying for full authorisation, or if their authorisation application is refused.
Firms that have had their permissions cancelled will no longer be a regulated business in the UK, said the FCA, and will be committing a criminal offence if they do so.
To date, the FCA has cancelled the temporary permissions of four firms who did not respond to multiple mandatory information requests.
Emily Shepperd, executive director of authorisations at the FCA, said: “The UK is open for business, but not to firms who do not meet our regulatory expectations. “We expect firms operating under the regime to be responsive to our requests for information, and that are coherent in their business planning. We will continue to act against firms that fail to meet our standards.”
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