The U.K. Financial Conduct Authority revealed contingency plans to allow European Economic Area financial firms to temporarily continue doing business in the country after Brexit.
EEA financial companies operating in the U.K. via passporting can notify the FCA of their intention to enter the temporary permissions regime, starting Jan 7. The regime will allow continuity of operations for up to three years if the U.K. exits the EU without a formal implementation period in place.
It will also allow investment funds currently passporting in Britain to continue temporarily marketing in the U.K.
Firms will have to notify the FCA of their intention to enter the regime, while fund managers will have to alert the regulator about the passported funds they wish to continue to market.
The notification window opened Jan. 7 and closes March 28, one day before Brexit.