Our use of the Temporary Transitional Power (TTP) has ended and, with certain exceptions, firms must fully comply with UK onshored regulatory obligations. Here we explain how we used the TTP and where it still applies.
The TTP as laid out in Treasury legislation expires on 31 December 2022. However, in line with agreed timescales we stopped using the power on 31 March 2022, except in relation to the Share Trading Obligation (STO) and Derivative Trading Obligation (DTO).
To prepare for the end of the Brexit transition period, we onshored, and where necessary adapted, EU legislation to ensure it was workable in a UK-only context. Some requirements on firms and other regulated persons changed at the end of the transition period on 31 December 2020.
To give firms time to adapt to their new requirements and avoid disruption, the Treasury gave UK financial regulators the power to make transitional provisions to financial services legislation for a temporary period. This was known as the TTP.
Firms should have used the duration of the TTP to prepare for full compliance with changes to UK regulatory obligations. We now expect firms to fully comply with their obligations.
STO and DTO exceptions
The TTP continues to apply to the STO and DTO. The STO and DTO TTP Directions took effect from the end of the transition period (11 pm on 31 December 2020).
Unlike other TTP Directions, the STO and DTO TTP Directions do not include a specified end date. Therefore, unless they are varied or revoked they will continue to apply until 31 December 2022.
We continue to monitor market and regulatory developments and will review our approach if necessary.
For more information, see our:
How we used the TTP
Our directions set out our use of the TTP.
Under our main transitional directions, firms and other regulated persons had to either comply with regulatory obligations that applied before 11pm on 31 December 2020, or with onshored regulatory obligations during the TTP period.
However, where our prudential transitional direction applied (eg in relation to capital requirements for investment firms), in line with the Bank of England’s and PRA’s transitional directions, firms had to continue to comply with their pre-existing obligations as they stood before the end of the transition period, until 31 March 2022.
Since the transition period ended, onshored EU legislation has applied.
‘Onshoring’ was the process of amending EU legislation and regulatory requirements so that they work in a UK-only context. Onshored legislation includes directly applicable EU legislation, such as EU Regulations and Decisions, that form part of UK law by virtue of the European Union (Withdrawal) Act 2018.
For more information, refer to these historical pages about firms’ requirements under the TTP: