FCA steps up efforts to ensure companies are getting ready for a no-deal Brexit

To help companies prepare, the FCA will be running a series of digital adverts signposting to the FCA Brexit webpages and it has set up a dedicated telephone line (0800 048 4255).

This is the most recent phase of the regulator’s preparations for a no-deal. The regulator is urging all companies to consider the implications of a no-deal exit and finalise their preparations.

This is particularly relevant for companies that: are a UK business which does any business in the EEA, passport into the UK and have not notified the FCA for entry into the temporary permissions regime (TPR), have consumers in the EEA and transfer personal data from the EEA.

The FCA, working with the government, has put in place several measures to minimise the potential for disruption, for example TPR and temporary transitional powers.

Brexit will also result in the loss of passporting for UK companies doing business in the EEA. Whether companies need regulatory permissions to continue to do business in an EEA country will depend on the activity they are carrying on, the local law and the approach of the local authorities in that jurisdiction.

Companies should make themselves aware of any transitional regimes, with deadlines or registration requirements attached to them, that have been put in place by relevant EU member states. A list is available on the FCA website, but the FCA would draw particular attention to the Luxembourg transitional regime for existing contracts where companies must register by 15 September 2019.

Companies should also consider any regulatory changes that could apply in the event of no deal. For example, the Markets in Financial Instruments Directive (Mifid II) transaction reporting will change, and companies should be ready to implement this.

In the event of no-deal there will be several changes to the FCA Handbook, whilst the TPR will come into force. The FCA will become responsible for credit ratings agencies and trade repositories.