As the UK prepares to leave the EU, FCA solo regulated firms should consider if or how they will be affected and what action they may need to take. Firms need to make sure they understand the implications of Brexit and plan accordingly. Passporting currently allows firms authorised in an EEA state to conduct business within other EEA states based on their ‘home’ member state authorisation.
After Brexit, and any implementation period, passporting in its current form will end for the financial firms currently using it in the UK. This may change depending on any future agreement with the EU.
This will affect:
- firms and funds based in the UK that conduct business in the EEA
- firms and funds based in the EEA that carry out certain types of business in the UK
There are questions on our website that may help you decide if you conduct business in the EEA or if Brexit might affect your business. If you think that you are affected by Brexit you should:
- Work out what changes you might have to make to your business or which additional regulatory permissions you may need to continue to carry it out.
- Think about any information you will need to give to customers who might be affected by your plans and how you can provide it in a way which is clear, fair and not misleading. For example, explaining clearly to customers where a change in contractual terms might affect them.
- Consider the implications of a range of possible scenarios including an implementation period.
You may also want to discuss the implications with the relevant EEA regulator in the countries in which you do business, your trade association or get independent legal advice for further clarification.