FCA Consults on Brexit Related Changes to Its Handbook and Standards
FCA published further proposals (CP18/36) on how it will amend its Handbook and EU-derived binding technical standards (BTS) if the UK leaves EU without an implementation period in place. FCA is also consulting on the proposed approach to non-Handbook guidance and to forms that appear in the FCA Handbook. The comment period on CP18/36 closes on December 21, 2018.
In October 2018, FCA had published its first consultation on the amendments needed, should the UK leave EU without an implementation period. This consultation paper proposes further changes that may need to be made to the FCA Handbook and BTS. These include amendments to reflect the temporary permissions regime, new credit rating agency (CRA) regime, and trade repository regime. CRAs in EU are regulated under the CRA Regulation and are supervised by ESMA. The Treasury intends to amend the legislation to make FCA the supervisor responsible for CRAs registered under the UK regime. FCA is also consulting on guidance on how non-Handbook guidance should be interpreted after Exit day and on the approach to forms that appear in the Handbook. In particular, CP18/36 covers the following topics:
- Chapter 2 discusses a range of cross-cutting issues which span our Handbook and BTS and the proposed FCA approach to these. This includes further issues identified since publication of the first CP.
- Chapter 3 explains the Handbook proposals covered in this consultation (except those related to the introduction of the temporary permissions regime and the new credit rating and trade repository regimes). This includes an explanation of the more significant changes FCA is proposing, including those related to the prudential standards addressing proposals related to contractual recognition of bail-in.
- Chapter 4 sets out certain proposals about the temporary permissions regime, which were previously described but not consulted on in CP18/29.
- Chapter 5 outlines the changes FCA proposes to make to BTS. An explanation of the FCA approach to BTS was included in the first consultation.
- Chapter 6 summarizes the FCA approach to forms and the guidance FCA proposes to issue on this.
- Chapter 7 outlines changes because FCA will take on regulating credit rating agencies and trade repositories.
- Chapter 8 summarizes the proposed approach to non-Handbook guidance issued by FCA and the guidance FCA proposes to issue on this. FCA expects proposals in this chapter to be of interest to CRAs and trade repositories.
Related Links
Comment Due Date: December 21, 2018
Keywords: Europe, UK, Banking, Insurance, Securities, CP18/36, Brexit, CRA Regulation, Temporary Permissions Regime, FCA Handbook, FCA
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