FCA’s Temporary Transitional Power (TTP) to end on 31 March 2022

When the FCA’s Temporary Transitional Power (TPP) ends on 31 March 2022 financial services firms and other regulated entities will need to ensure that they comply with all UK on-shored EU legislation.

The on-shored regulatory obligations have applied since the end of the transition period (31 December 2020), which followed the UK’s departure from the EU.

The TTP granted temporary relief from the requirement for full compliance in the areas where it was applied, meaning that firms:

• could continue to comply with their pre-existing requirements; but
• were expected to use the TTP period to prepare for full compliance with the on-shored UK regime.

What’s the background?

When the UK left the EU, it on-shored much of the EU legislation and regulatory requirements to ensure that that worked under the UK’s national regime. As part of this process, the Treasury gave the FCA power to make transitional provisions to the UK financial services legislation for a temporary period.

This meant that firms did not need to comply with the adjusted obligations straight away but had until the end of the TTP to comply (31 March 2022).

What happens next?

With the end of the TTP on 31 March 2022, firms will need to comply with all on-shored regulatory obligations from this point.