Our use of the Temporary Transitional Power (TTP) has ended. We explain how we used it and where it still applies to firms.
With certain exceptions, firms must fully comply with UK onshored regulatory obligations.
The TTP as laid out in Treasury legislation expired 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).
TTP explained
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.
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[1] applied (eg in relation to capital requirements for investment firms), in line with the Bank of England’s and PRA’s transitional directions[2], 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[3], 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:
- key requirements of firms[4] where transitional relief was not available under the TTP
- transitional provisions and regimes[5]
- transitional directions[6]
STO and DTO exceptions
The TTP continued to apply to the STO and DTO after the end of the transition period. 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 did not include a specified end date.
Following Treasury legislation, the period during which the STO and DTO TTP Directions continued to apply was first extended to 31 December 2024.
On 29 August 2023, the STO was revoked by the commencement of provisions in the Financial Services and Markets Act 2023.
From 31 December 2024, the transitional DTO Direction was replaced by an updated Direction using new FCA powers granted by the Financial Services and Markets Act 2023.
We continue to monitor market and regulatory developments and will review our approach if necessary.
For more information, see our:
