The U.K.'s Financial Conduct Authority published two consultation papers outlining its plans to ensure "chaos-free continuity" of financial services in the event of a hard Brexit where Britain leaves the EU without a deal and with no transition period.
The U.K. Treasury aims to convert existing applicable European laws into U.K. legislation so that both systems are identical once the country exits the EU. It will also give the FCA, and other financial services regulators, the responsibility to change EU binding technical standards in order to ensure they function effectively.
Furthermore, the watchdog will take over supervision of sectors that previously fell under the purview of European regulators.
Additionally, the FCA proposed a temporary permissions regime, similar to passporting rights that are already in effect, which will enable European Economic Area companies to continue providing services in, and to, the U.K. while they seek full authorization. The grace period will be up to three years.
The consultation will remain open until Dec. 7.