FCA to re-open its TPR window on 30 September

What impact does the FCA's announcement have?

The FCA's announcement gives EEA firms and fund managers a chance to notify the FCA, before the transition period ends on 31 December 2020, that they want to make use of the TPR.

Firms and funds which have already submitted a notification to the FCA don’t need to take any further action (unless they wish to update an already submitted notification).

A further update from the FCA will follow in September 2020.

Why is a TPR necessary?

During the transition period, EU rules continue to apply in the UK.

This means, among other things, that an EEA financial services firm can take advantage of a passport under a number of EU directives to establish a branch or provide financial services in any EEA Member State without having to obtain authorisation other than in their home Member State.

Until 31 December 2020, the ability to use such passports will continue.

After the end of the transition period, though, the passporting regime will fall away and, in the absence of any other arrangements (for example, a trade agreement agreed between the UK and the EU), EEA-domiciled firms and funds will need to obtain authorisation or recognition (respectively) from the FCA if they want to continue to access the UK market.

The TPR provides a temporary backstop, which ensures firms and investment funds can continue their business with minimal disruption while they seek full UK authorisation or recognition and which allows investment funds which have the benefit of a passport to continue temporarily marketing in the UK.

For more information on the TPR, see our earlier update from 2018 here. Note that the term 'no Brexit' or 'hard Brexit' now means should a trade agreement not be reached before 31 December 2020 – but the overall principles of how and when the TPR would be used remain the same.