Featured Product

    FCA Consults on Regulation of International Firms in UK

    September 25, 2020

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK. The consultation paper CP20/20 sets out the general approach of FCA to international firms providing or seeking to provide financial services that require authorization in UK. The comment period for this consultation expires on November 27, 2020.

    FCA expects that there will be an increase in the number of international firms seeking authorization at the end of the Brexit transition period, with over 1,500 firms currently registered in the Temporary Permissions Regime. CP20/20 and the final document FCA expects to publish after consultation are intended to provide guidance to help international firms understand the expectations of FCA, as they prepare for their applications for full UK authorization. This could help inform firms’ decision about how they might want to structure their businesses to provide regulated financial services in UK.
    This consultation applies to international firms that require authorization, including:

    • European Economic Area firms that have applied for authorization in the UK, or intend to seek authorization in the future, including those which have notified (or intend to notify) for the Temporary Permissions Regime
    • International firms from non-EEA countries that have applied or intend to apply for authorization in the UK, or are already authorized in the UK

    For regulated activities that require a permission under Part 4A of the Financial Services and Markets Act 2000, depending on the activities an international firm performs, it will either be solo-regulated by FCA or dual-regulated by FCA and PRA. FCA authorizes solo-regulated firms while PRA is the lead authority for authorization in the case of dual-regulated firms, though FCA must also provide its consent. PRA has already published details of its approach to the authorization and supervision of branches of international banks and international insurers. To give consent, FCA will assess these firms against its own threshold conditions for dual-regulated firms, taking account of its statutory objectives. FCA's threshold conditions for dual-regulated firms are different to its threshold conditions for solo-regulated firms. The focus of FCA assessment is also somewhat different to that of the PRA assessment. Therefore, dual-regulated international firms will wish to consider the issues raised in CP20/20 and the extent to which their structures and the scope of their operations could present the risks identified in this consultation paper.

     

    Related Links

    Comment Due Date: November 27, 2020

    Keywords: Europe, EU, UK, Banking, Insurance, Securities, Brexit, CP20/20, Temporary Permissions Regime, FSMA, Authorization Regime, FCA

    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206