The UK left the EU on 31 January 2020 with a Withdrawal Agreement. It entered a transition period, which operated until 31 December 2020. On 24 December 2020, the EU and the UK agreed on the terms of the UK-EU Trade and Cooperation Agreement. The UK has approved the agreement and it came into effect provisionally at 11pm on 31 December 2020, pending the EU taking the necessary steps to fully approve it. Find out what this means for the FCA, firms and consumers.
What this means for the FCA
We worked hard to ensure that we and the UK financial services sector were prepared for the end of the transition period.
We will continue to provide firms and consumers with the information they need now that the UK is no longer part of the EU.
We will continue to engage closely with the UK government and other UK regulators. We will also continue to work with the European Supervisory Authorities, national authorities in member states and all European policymakers on shared issues and priorities.
What firms need to consider
Passporting allows firms authorised in an EEA state to conduct business within other European Economic Area (EEA) states based on their ‘home’ member state authorisation. Passporting is no longer possible between the UK and EEA.
Equivalence is not a substitute because it does not cover retail business and could only cover market access in limited areas, if a relevant equivalence decision is made in the future. You need to consider the impact of this on your firm.
Our considerations for firms[1] page has guidance on a range of areas including:
- Passporting
- Data sharing
- Communicating with your customers
- Considerations for UK and EEA firms
- Temporary regimes including the TPR, TTP and FSCR
You can also keep up to date with our latest information by signing up to our monthly Regulation Round Up[2] or our weekly news and publications alerts[3].
Impact on consumers
The end of the Brexit transition period may have impacted firms and the products and services they provide to consumers. The protections and rights you have for your financial products and services may also have changed. You are more likely to be particularly affected if you are resident in the European Economic Area (EEA) or if you receive services from an EEA firm.
Find out more about what the end of the transition period means for consumers[4].