In the context of Brexit, the UK Financial Conduct Authority (FCA) asked the CSSF to channel to Luxembourg-based entities the following communication regarding the UK Temporary Permissions Regime (TPR). The following text is a literal transcription of the FCA’s communication:
“The TPR will enable relevant firms and funds which passport into the UK from your jurisdiction to continue operating in the UK from the end of the transition period. The regime will allow firms and investment funds time to obtain authorisation or recognition in the UK, if required. Firms and funds need to notify the FCA of their desire to benefit from the regime, and any solo-regulated firms that have already notified us are now receiving communications from us about how they should prepare. We would be very grateful for your assistance to help facilitate these preparations, specifically, if you could please remind firms in your jurisdiction of the following:
1. For firms that passport into the UK, the notification window for the TPR reopened on 30 September. This will allow any solo-regulated firms and fund managers that have not yet notified to do so. The reopening of the notification window also provides an opportunity for fund managers to update their previously submitted notifications, if necessary. The FCA’s passporting team will be in touch shortly to check that all firms from your jurisdiction that have notified for TPR remain authorised.
2. If firms hold a passport and have already notified to be in the TPR, but do not require a UK authorisation because, for example, they are not doing any UK business, they should withdraw their TPR notification and, if they have no existing contracts, also cancel their passport. This is an important message which we would appreciate your help with communicating.
3. Any firms with a passport to the UK that do not enter the TPR, and that require permission to perform an existing contract, will automatically enter the UK’s Financial Services Contracts Regime (FSCR), to allow them to wind down their UK business in an orderly fashion. Firms in the FSCR will not be able to write new business in the UK, and we would appreciate you reminding firms of this. More details are available on the FCA’s website, and should there be further questions then the FCA’s Contact Centre can assist.
We also wanted to bring your and your firms’ attention to a recent publication. On 23 September we published a consultation paper on our general expectations for international firms that require FCA authorisation, which will be needed if they wish to undertake regulated activities in the UK on an on-going basis. It sets out more information on our expectations for that authorisation. All firms seeking a UK authorisation will be expected to have an active place of business in the UK. As such, we would be grateful if you could draw the consultation paper to the attention of local firms, especially those which currently passport into the UK on a services basis. The consultation closes on 27 November 2020.”
Questions related to TPR notifications should be addressed directly to the FCA.