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) 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 (or before they entered the FSCR) in order to conduct an orderly exit from the UK market now that the transition period has ended.
The FSCR is relevant to EEA firms that previously passported into the UK if they:
- need to carry out regulated activities in order to continue to perform their existing contracts, and did not notify us that they wished to enter the TPR, or
- are unsuccessful in securing authorisation when leaving the TPR and still have regulated business in the UK to run off
If your firm is in the FSCR
Your firm is not able to write new UK business and is limited to the regulated activities 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. It will apply for:
- a maximum of 15 years for insurance contracts, or
- 5 years for all other contracts
The Treasury can extend these periods, if necessary, based on a joint assessment by us and the PRA.
These periods are maximum periods and a firm’s permission (or exemption) under FSCR applies only to the extent that it is necessary for the performance of a pre-existing contract plus certain limited specified activities. However, we expect firms in the FSCR to run down their UK business promptly.
- supervised run-off (SRO) – for EEA firms with UK branches or top-up permissions in the UK, and firms who entered the TPR but then did not secure a UK authorisation, or
- contractual run-off (CRO) – for remaining incoming cross-border services firms
Notifying us of entry into CRO
If you’re a firm that previously passported into the UK under Schedule 3 or Schedule 4 to FSMA, you must notify us after entry into CRO as soon as reasonably practicable.
If you’re an EEA authorised payment institution, EEA authorised e-money institution or EEA registered account information service provider, you must notify us after entry into CRO, as soon as reasonably practicable, and within a month of becoming aware of an obligation under a pre-existing contract, that you are providing payment or e-money services in the UK.
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.