The temporary permissions regime (TPR) will enable relevant firms and funds which passport into the UK to continue operating in the UK when the passporting regime falls away at the end of the transition period.
Update: 30 September 2020
The UK left the EU on 31 January 2020 and 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 and passporting will continue.
The TPR will now take effect at the end of the transition period.
EEA firms can now notify us if they wish to use the temporary permissions regime. Notifications should be submitted via our Connect system before the end of 30 December 2020.
Firms that have already submitted a notification need take no further action unless your firm needs to update the details of its UK agents that were included in its earlier notification or if it has started to use UK agents since it notified. For details, see our notification process for firms page.
Fund managers can also now notify us if they wish to use the temporary permissions regime. Notifications should be submitted via our Connect system before the end of 30 December 2020.
Fund managers that want to update their previously submitted notification should email [email protected] by the end of 9 December 2020 at the very latest confirming this and including their FRN.
Fund managers should expect to be able to submit their updated notification from 14 December 2020. Fund managers should only submit their updated notification when they are certain that all the correct funds are included. Updated notifications must be received before the end of 30 December 2020.
Fund managers should continue to follow current processes via their home state regulator for marketing new funds in the UK and should allow sufficient time for notifications to be received and processed by us to ensure that any new funds are eligible for the TPR. Fund managers can continue to create new draft notifications on Connect to monitor their fund population.
If new funds have been added to a fund manager’s population since an earlier notification was submitted, the new funds will not be included in the temporary marketing permission regime unless fund managers request to update their notification and include them in that updated notification.
The TPR is designed to help firms and investment funds continue their UK business with minimal disruption when the passporting regime ends at the end of the transition period.
If you’re an inbound firm, the TPR will allow you to continue operating in the UK within the scope of your current permissions for a limited period after the end of the transition period, while you seek full UK authorisation, if required. The TPR covers both your firm’s pre-existing business and any new business entered into during the TPR.
If you’re a fund manager marketing funds in the UK via a passport, your funds can enter the temporary marketing permission regime (TMPR). This will allow you to continue temporarily marketing in the UK.
There are other pages in this section about:
- which firms and investment funds can use the TPR
- the rules which will apply to firms and fund operators in the TPR
- the notification process for firms (including information on withdrawing a TPR notification)
- considerations for firms leaving the TPR
- the notification process for funds
- TPR fees that your firm or investment fund will need to pay
- the financial services contracts regime
During the transition period
Currently, financial services firms in any European Economic Area (EEA) member state can use the passporting regime to establish a presence or carry out permitted activities in any other member state. Investment funds can be marketed across the EEA under similar passporting provisions.
During the transition period, EU law remains applicable in the UK in accordance with the EU-UK Withdrawal Agreement. This means that firms must continue with implementation plans for EU legislation that is still to come into effect before the end of December 2020.
After the transition period
When the passporting regime falls away at the end of the transition period:
- EEA firms may need to seek authorisation in the UK to continue to access the UK market
- EEA UCITS funds will need to seek UK recognition to continue to market to the general public in the UK
- EEA fund managers that want to market EEA and UK AIFs in the UK will need to notify us under the National Private Placement Regime (NPPR)
Given these consequences, the TPR/TMPR create a temporary regime which will, for a limited period after the end of the transition period, allow:
- inbound firms to continue operating in the UK within the scope of their passport permission (as it stands at the end of the transition period) while seeking full UK authorisation, if required
- EEA UCITS funds to continue marketing in the UK while seeking UK recognition
- EEA and UK AIFs that were marketed in the UK by EEA fund managers to continue to be marketed in the UK for a limited period during which time the fund manager will need to notify the FCA under the relevant legislation
The Government has also established the financial services contracts regime (FSCR). At the end of the transition period the FSCR will enable EEA passporting firms that do not enter the TPR to wind down their UK business in an orderly fashion.
The FSCR will automatically apply to EEA passporting firms that do not notify us that they wish to enter the TPR, but have pre-existing contracts in the UK which would need a permission to service.
If you have questions or need help, please contact us.
31/01/2020: Information changed Updated with the latest information