More than 1,000 European companies and fund managers have entered the U.K.'s Temporary Permissions Regime to minimize disruption from a hard Brexit and ensure continued operations in Britain, Nausicaa Delfas, executive director of international at the U.K. Financial Conduct Authority, said in a speech March 21.
Currently, EU firms are authorized to carry out activities in the U.K. via a "passporting" regime.
The Temporary Permissions Regime is meant to work as a stopgap in case there is no implementation period, resulting in an abrupt end to the passporting regime when Britain leaves the bloc, scheduled to happen on March 29.
Delfas said the authority, or FCA, will apprise firms about their "landing slots" — when they need to submit their authorization applications — after the notification window closes on March 28, keeping in mind the time they will need to prepare their applications. She added that the first landing slots are expected between October and December and the last slots between January 2021 and March 2021.
However, there is no similar regime in place for U.K.-based firms that passport into the EU, and only a few EU member states — namely Germany, Spain, France, Ireland, Italy, Luxembourg and the Netherlands — have set up similar arrangements, Delfas said.
Delfas was addressing the 4th U.K. Financial Services Brexit Summit about the FCA's preparedness for Brexit, what companies are expecting from it and the implications of Britain's divorce from the bloc on consumers. She also highlighted the expected residual risks and what the FCA expects its future international relationships to be like post-Brexit.
The FCA has signed memoranda of understanding with European regulators, including national watchdogs, to ensure a high level of cooperation regardless of whether Brexit occurs with or without a deal.
"Our international engagement does not diminish with Brexit: in fact, it only increases with importance — now more than ever, it is vital that we have strong links with our international counterparts," Delfas said.