From: RegTech Analyst
A City watchdog has warned firms that the Brexit transition period will be over in less than a month’s time as the government is still working on a last-minute deal with the EU.
This week the deadline is running out for the UK government to sign a deal with the EU about their future relationship in a post-Brexit world.
Now, the Financial Conduct Authority (FCA) has reminded firms that the transition period ends at 11pm on 31 December and that they must be prepared for a number of changes to the regulatory environment in which they operate.
The biggest of those changes are that EU laws will no longer apply and passporting will end.
In order to help businesses prepare for the divorce to be finalised, the regulator has published guidance on its website setting out the key issues firms need to focus on. With passporting coming ton an end on New Year’s Eve 2020, firms that intend to carry on providing services currently covered by a passport will need to ensure they will be able to do so after the end of the transition period,
Moreover, the FCA is making use of the Temporary Transitional Power to provide firms with more time to comply with a large number of the changes. That being said, the City watchdog urged firms to ensure they reach key requirements to comply with by 1 January 2021.
“With just a month to go until the end of the transition period, firms need to make sure they are prepared for the end of passporting, and for the new financial services landscape after the end of the transition period,” said Nausicaa Delfas, executive director of international at the FCA.
“To help minimise disruption, we have onshored EU legislation and established temporary regimes to allow non-UK firms and funds to operate in the UK after 31 December 2020. We remain committed to open markets, international co-operation and high international standards of regulation.”
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