General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
February 02, 2019

FCA published a consultation paper (CP19/2) that sets out details of the financial services contracts regime (FSCR). CP19/2, which should be read in conjunction with the FSCR Regulations, contains the FCA proposals for rules that will apply to firms in the FSCR. The last date for comments was January 29, 2019. The FSCR allows the European Economic Area firms to conduct an orderly exit from the UK, in case the UK leaves EU without an implementation period. FCA recently updated its information on FSCR and plans to publish the final text of the proposed rules,, along with the feedback to CP19/2, before the exit day.

The FSCR Regulations will allow European Economic Area firms—that have pre-existing contracts in the UK and that would require a permission to service these contracts—to continue to carry on the relevant regulated activities in the UK for a limited period. FCA needs to amend its Handbook to apply the appropriate rules to firms under the FSCR for this UK business and is, therefore, consulting on the application of these rules in CP19/2. The FSCR will work alongside the temporary permissions regime, which enables inbound European Economic Area firms to access the UK market while seeking full authorization in the UK. The FSCR will provide two discrete mechanisms:

  • Supervised run-off—for the European Economic Area firms with UK branches or top-up permissions in the UK and firms who entered the temporary permissions regime but did not secure a UK authorization at the end
  • Contractual run-off—for the remaining incoming services firms

The consultation paper is relevant for European Economic Area firms that are passporting into the UK under the Financial Services and Markets Act 2000 (FSMA) and Treaty firms. It is also relevant for European Economic Area electronic money and payment institutions and registered account information service providers passporting into the UK.

Related Links

Comment Due Date: January 29, 2019

Keywords: Europe, UK, Banking, Insurance, Securities, FSCR, Brexit, CP19/2, FSCR Regulations, FCA

Related Insights

US Agencies Extend Consultation Period for the Proposed SA-CCR

US Agencies (FDIC, FED, and OCC) extended the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts.

February 18, 2019 WebPage Regulatory News

FED Extends Consultation Period for Stress Testing Rule

FED has published in the Federal Register a notice proposing amendments to the company run and supervisory stress test rules.

February 15, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: Third Update for February 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

February 15, 2019 WebPage Regulatory News

FSB Report Examines Financial Stability Implications of Fintech

FSB published a report that assesses fintech-related market developments and their potential implications for financial stability.

February 14, 2019 WebPage Regulatory News

US Agencies Amend Regulatory Capital Rule to Allow Phase-In for CECL

US Agencies (FDIC, FED, and OCC) adopted the final rule to address changes to credit loss accounting under the U.S. generally accepted accounting principles; this includes banking organizations’ implementation of the current expected credit losses (CECL) methodology.

February 14, 2019 WebPage Regulatory News

FED Issues Correction in Historical Dataset in its 2019 Stress Tests

FED identified an error in the historical dataset used in its 2019 stress tests and issued a correction.

February 13, 2019 WebPage Regulatory News

OCC Consults on Company-Run Stress Test Requirements for Banks

OCC proposed amendments to its company-run stress testing requirements for national banks and Federal savings associations, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

February 12, 2019 WebPage Regulatory News

CFTC Extends Comment Periods for Trade Execution Requirement Proposals

CFTC announced that it is extending comment period for the proposed amendments related to the regulations on swap execution facilities (SEF) and trade execution requirement.

February 12, 2019 WebPage Regulatory News

BCBS Updates Instructions for Basel III Monitoring Exercise

BCBS updated instructions for Basel III monitoring for the collection of December 2018 data from the participating banks.

February 12, 2019 WebPage Regulatory News

OCC Proposes to Renew Information Collection Under Stress Test Rule

OCC is proposing to renew its information collection titled “Annual Stress Test Rule” (OMB Control No: 1557-0311). Comments must be received on or before March 13, 2019.

February 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2603