Here we explain which types of firms and investment funds can use the temporary permissions regime (TPR).
Firms that can use the regime
- Firms that have passports under Schedule 3 to FSMA in place before the end of the transition period, including where they also have top-up permissions
- Treaty firms under Schedule 4 to FSMA which qualify for authorisation before the end of the transition period, including where they also have top-up permissions
- Electronic money institutions, payment institutions and registered account information service providers who are exercising their passporting rights under the Electronic Money Directive (EMD) or the Payment Services Directive (PSD2) before the end of the transition period
These firms might currently be operating on a freedom of establishment basis, a freedom to provide services basis or both. But the scope of a particular firm’s temporary permission is determined by the type of passport it had and what was covered by its passport prior to the end of the transition period.
We will publish details of which firms have temporary permission on the Financial Services Register once the regime is in place.
Credit institutions and insurers
The Prudential Regulation Authority (PRA) at the Bank of England is the lead authority for authorising incoming EEA credit institutions and insurers.
The PRA is responsible for deciding the process and timescales for these firms to be included in the TPR. There are further details on the Bank of England’s website.
However, some of the information we provide on our website is still relevant to these firms, specifically the page on how we will be applying our Handbook to firms in the TPR.
Firms with MiFID tied agents
Firms which enter the TPR will have Part 4A permission. This means that if you have MiFID tied agents shown on the Financial Services Register at the end of the transition period, they will continue to be able to act for you during your time in the TPR. If your tied agents are not on the Financial Services Register at the end of the transition period, they will not be able to carry on regulated activities.
Bear in mind that if you're considering using the financial services contracts regime (FSCR) to run off your UK-regulated business, the regime for cross-border services firms (contractual run-off) does not support the use of tied agents in the UK.
If your firm is based in Gibraltar and passports into the UK, you will not need to use the TPR. The UK government will work closely with the government of Gibraltar to design a replacement market access framework for the future. In the meantime, the Government has stated that it has introduced temporary arrangements to protect access, which will be in place until the permanent arrangements are delivered.
Other transitional regimes
There are separate transitional regimes for:
Investment funds that can use the regime
The following investment funds will be able to use the temporary marketing permissions regime (TMPR) if we have received notification of their intention to continue to market in the UK under the relevant passport prior to the end of the transition period:
- EEA-domiciled UCITS and any notified sub-funds
- UK and EEA-domiciled Alternative Investment Funds (including EuVECAs, EuSEFs, ELTIFs and AIFs authorised as MMFs) managed by EEA authorised managers
New EEA sub-funds
If new EEA sub-funds are authorised by the relevant home state regulator after the end of the transition period, but form part of an umbrella scheme that notified for the TMPR prior to exit, they may be added into the regime so that they can market to UK investors.
We will publish further details of this process in due course, but we expect it to be similar to the current route by which new sub-funds can be notified for marketing in the UK.