The UK left the EU on 31 January 2020 with a Withdrawal Agreement. It has entered a transition period which is due to operate until 31 December 2020. During the transition period, EU law will continue to apply in the UK. Find out what this means for the FCA, firms and consumers. The information on this page is based on the position at exit day (31 January 2020). We will provide more information, and updates about our expectations of firms, as it becomes available.
During the transition period, EU law continues to apply in the UK. New EU legislation that takes effect before the end of the transition period will also apply to the UK.
The UK and the EU have indicated, in a Political Declaration, that they intend to reach agreement on the future relationship between the UK and the EU by the end of 2020. The Political Declaration also states that the UK and the EU will seek to conclude equivalence assessments by the end of June 2020. The UK government has indicated it does not intend to extend the transition period.
What this means for the FCA
We will be working hard to ensure that we and the UK financial services sector are prepared for the end of the transition period. This includes continuing to engage with the UK government and other UK regulators.
We will also continue to work with the European Supervisory Authorities, national authorities in member states and all European policymakers on shared issues and priorities.
What firms need to consider
Passporting allows firms authorised in an EEA state to conduct business within other EEA states based on their ‘home’ member state authorisation. Passporting will continue during the transition period.
But firms should not expect current passporting arrangements to continue after the transition period ends. This means that you should anticipate a range of possible scenarios for the end of the transition period, including that the activities you conduct might not be covered by arrangements agreed between the UK and the EU.
You will need to consider how the end of the transition period will affect you and your customers, and what action you may need to take to be ready for 1 January 2021. We will provide further information as and when there are material developments, including about what we expect from firms.
Consumers' rights remain the same during the transition period
During the transition period, EU law continues to apply until 31 December 2020. The current protections and rights you have for your financial products and services won’t change due to the transition period.
If you need help, call our dedicated telephone line on 0800 048 4255. The line is open Monday, Tuesday, Wednesday and Friday 9am to 5pm, and Thursday 9.45am to 5pm.