The financial services contracts regime (FSCR) enables EEA firms that previously passported into the UK and that did not enter the temporary permissions regime (TPR), or that leave the TPR without being authorised or registered in the UK, to wind down their UK business in an orderly fashion.
For a limited period of time, the FSCR allows these EEA firms to service UK contracts entered into before the end of the transition period (11pm 31 December 2020) or before they left the TPR and entered the FSCR in order to conduct an orderly exit from the UK market.
The FSCR is relevant to EEA firms that previously passported into the UK or that were in the TPR if they:
- need to carry out regulated activities under FSMA (or provide services that would otherwise require authorisation or registration under the Payment Services Regulations 2017 (PSRs) or the Electronic Money Regulations 2011 (EMRs)) in order to continue to perform their existing contracts, and did not notify us that they wished to enter the TPR, or
- leave the TPR without being authorised or registered in the UK and still need to carry out regulated activities (or provide services that would otherwise require authorisation or registration under the PSRs or the EMRs) in order to continue to perform their existing contracts.
If your firm is in the FSCR
If your firm is in the FSCR, it is not able to write new UK business and is limited to the regulated activities (or providing the services) which are necessary for the performance of pre-existing contracts only, plus certain limited specified activities.
The FSCR is time-limited depending on the type of regulated activity being performed (or the services being provided). It will apply for:
- a maximum of 15 years for insurance contracts, or
- a maximum of 5 years for all other contracts
These are maximum periods and a firm’s permission (or exemption) under the FSCR applies only to the extent that it is necessary for the performance of a pre-existing contract, plus certain limited specified activities. We expect firms in the FSCR to run down their UK business promptly.
- supervised run-off (SRO)
- contractual run-off (CRO)
Telling us that your firm is using SRO or CRO
Notifying us of entry into SRO
Notifying us of entry into CRO
SRO status disclosure requirements (applies to some firms in SRO)
CRO status disclosure requirements (applies to some firms in CRO)
Other notification requirements
Leaving SRO or CRO
If your firm is in SRO or CRO and has closed its UK business, see our information about leaving these regimes.