Regimes for EEA firms and investment funds that passported into the UK

EEA-based firms and investment funds can no longer passport into the UK. Find out about the regimes that help those firms operate or wind down their business.

The Government established 3 regimes to help firms and investment funds that previously passported into the UK to either continue operating in the UK or conduct an orderly exit from the UK market.

Previous passporting regime

Financial services firms in any European Economic Area (EEA) member state could use the passporting regime to establish a presence or carry out permitted regulated activities in the UK without being authorised by the PRA or the FCA. The passporting regime also allowed EEA-based investment funds to be marketed in the UK without being authorised by the FCA.

However, following the end of the transition period, EEA-based firms can no longer passport into the UK and, where necessary, will now need to be authorised and regulated by the PRA and/or the FCA in the UK. Similarly, EEA-based investment funds can no longer be marketed under a passport in the UK.

Temporary permissions regime

The UK Government established a temporary permissions regime (TPR) for EEA-based firms that previously passported into the UK.

The TPR allowed those EEA-based firms that were passporting into the UK at the end of the UK’s Brexit transition period (31 December 2020), to elect to continue operating in the UK within the scope of their previous passport, for a three year period after the end of the transition period, while seeking full authorisation by the PRA and/or the FCA in the UK, if required.

The TPR ended at the end of 2023 and there are no longer any firms in the regime.

For more information, see our pages about the TPR[1], including details of the relevant legislation.

Financial services contracts regime

Alongside the TPR, the UK Government established the financial services contracts regime (FSCR). The FSCR ensures that EEA-based firms that were passporting into the UK at the end of the transition period, and that did not enter the TPR or left the TPR without securing full UK authorisation, can continue, for a limited period, to fulfil their contractual obligations while conducting an orderly exit from the UK market.

For more information, see our page about the FSCR[2], including details of the relevant legislation, and the PRA’s website[3].

Temporary marketing permission regime

The TMPR continues to allow EEA-based UCITS funds that were passporting into the UK at the end of the transition period to continue to be marketed in the UK in the same manner as they were before the end of the transition period, for a limited period. Funds within the TMPR may also be able to add further funds and market them under the TMPR.

We have a number of powers in relation to EEA UCITS marketed under the TMPR, and their operators (fund managers) and depositaries. These powers are set out in Part 6 and 7 of the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019[4] and include powers to suspend the marketing of such funds in the UK and to impose requirements on their operators and depositaries.

Terms you might see in a firm’s details on the Financial Services Register

EEA Authorised – Temporary Marketing Permission

The fund operator/manager is authorised in an EEA country and had previously notified the FCA that it wanted to market certain types of investment funds in the UK via the EU passporting regime which allowed firms to market investment funds in the UK without being authorised by the FCA.

Following the end of the UK’s Brexit transition period, EEA-based funds can no longer be marketed under a passport into the UK.

Before the end of the transition period, the firm notified the FCA that it wanted some or all of its investment funds to enter the TMPR.

The TMPR provides a limited period of time during which funds can continue to be marketed in the UK, in the same manner as they were before the end of the transition period.

Details of EEA Undertakings for the Collective Investment in Transferable Securities (EEA UCITS) funds that are in the temporary marketing permission regime are available on the Financial Services Register[5].

Consumers doing business with firms with investment funds in the TMPR may wish to ask for further information from the firm about its complaints and compensation arrangements. A firm based in an EEA state may not be covered by a compensation scheme or not to the same extent as a UK authorised firm. The right to refer a matter to a dispute resolution scheme may not exist or may be more difficult for a UK customer to use.

EEA Authorised – Supervised Run-off

The firm is authorised in an EEA country and previously offered certain products or services in the UK via the passporting regime which allowed EEA-based firms to establish a branch or carry out regulated business in the UK on a cross-border services basis without being authorised by the FCA or the PRA in the UK.

The firm may have entered the TPR but left the regime without securing full UK authorisation or it did not notify either the PRA or the FCA that it wanted to enter the TPR and therefore entered the FSCR so that it could continue for a limited period, to fulfil its existing contractual obligations to UK customers while conducting an orderly exit from the UK market.

There are 2 parts to the FSCR and this firm is in the part called supervised run-off (SRO) which is generally for firms that had a UK branch.

Firms in SRO will not have been authorised or otherwise assessed by us or the PRA.

Firms in SRO can continue to undertake regulated business in the UK, for a period, but can only perform regulated activities within the scope of their previous passport in the UK and only to the extent necessary to continue to service pre-existing contracts with UK customers or where necessary to reduce financial risk, to transfer property or comply with the law. For example, they are generally not allowed to deal with new customers or undertake any new regulated business, unless it is necessary to perform a pre-existing contract.

While in the regime, this firm will still need to meet minimum standards, including many of those agreed across all EEA countries. It should also include specific wording in its letters (or electronic equivalents) to retail customers making it clear that it is in the FSCR.

Consumers doing business with firms in SRO may wish to ask for further information from the firm about its complaints and compensation arrangements. A firm based in an EEA state may not be covered by a compensation scheme or not to the same extent as a UK authorised firm. The right to refer a matter to a dispute resolution scheme may not exist or may be more difficult for a UK customer to use.

It is possible to check if a firm is in SRO by checking the Financial Services Register[5]. It will clearly state this at the top of a firm’s page.

In the case of banks and insurers, the PRA may deem certain individuals as approved to perform Senior Management Functions (SMFs) at the firm without the need for the PRA’s pre-approval for the duration of firms’ time in SRO, where the individual is the subject of an application for approval.

Therefore, some of the individuals shown as ‘approved’ to perform one or more of the following SMFs in the Individuals section on the firm’s page on the Financial Services Register may be deemed to be approved:

SMF2 - Chief Finance
SMF4 - Chief Risk
SMF5 - Head of Internal Audit
SMF7 - Group Entity Senior Manager
SMF19 - Head of Overseas Branch
SMF24 - Chief Operations

If you require further information regarding the approval of individuals please contact the firm or the PRA[6].

At firms other than banks and insurers, individuals shown as approved will have been approved by the FCA.

If the firm had also notified the FCA that it wanted to continue to temporarily market certain types of investment funds in the UK, it may also be in the temporary marketing permissions regime (TMPR).

EEA Authorised – Contractual Run-off

There are 2 parts to the FSCR and this firm is in the part called contractual run-off (CRO) which is generally for firms that previously provided services from an EEA country into the UK but did not have a UK branch.

Firms in CRO will not have been authorised or otherwise assessed by us or the PRA and are not regulated by the FCA or the PRA.

Firms in CRO can continue to undertake regulated business in the UK, for a period, but can only perform regulated activities within the scope of their previous passport in the UK and only to the extent necessary to continue to service pre-existing contracts with UK customers or where necessary to reduce financial risk, to transfer property or comply with the law. For example, they are generally not allowed to deal with new customers or undertake any new regulated business, unless it is necessary to perform a pre-existing contract.

Consumers doing business with firms in CRO may wish to ask for further information from the firm about the basis on which the firm is doing business with UK customers and, in particular, how complaints and compensation arrangements apply to UK customers. A firm based in an EEA state may not be covered by a compensation scheme or not to the same extent as a UK authorised firm. The right to refer a matter to a dispute resolution scheme may not exist or may be more difficult for a UK customer to use.

It is possible to check if a firm is in CRO by checking the Financial Services Register[6]. It will clearly state this at the top of a firm’s page.

13/03/2024 : Link changed Removed signposting to expired pages on notifying us about entering run-off

06/03/2024 : Information changed following the end of the TPR.

First published: 31/12/2020 Last updated: 29/05/2025 See all updates