When the UK leaves the EU, the FCA will become the UK regulator of trade repositories (TRs) and any TR wishing to offer its services in the UK will need to be registered with, or recognised by the FCA.
We continue to prepare for a range of scenarios, including one in which the UK leaves the EU without a deal and without entering an implementation period.
The European Union (Withdrawal) Act 2018 (EUWA) will repeal the European Communities Act 1972, preserve existing UK laws which implement EU obligations and convert existing EU law at the point of exit into UK law. The EUWA allows for amendments to retained EU law to ensure that it continues to operate effectively in the UK once the UK leaves the EU. It is not intended to make policy changes, other than where appropriate to reflect the UK’s new position outside the EU.
To support a smooth transition to the new regime for TRs in the UK, the Trade Repositories (Amendment and Transitional Provision) (EU Exit) Regulations 2018 (TR Regulation), which transfers functions in relation to the registration of TRs from ESMA to the FCA, includes both a conversion and temporary registration regime for firms wishing to operate as a TR in the UK on exit day:
- Conversion regime. This will allow TRs established in the UK before exit day to convert their existing ESMA registration into a registration with the FCA.
- Temporary registration regime (TRR). This will offer temporary registration to TRs that apply for registration with the FCA before exit day, provided they are a UK legal entity and part of the same group as a TR with an existing ESMA registration. Applications submitted by TRs alongside a notification to enter the TRR will be assessed in accordance with the requirements of the TR Regulations.
- For firms not falling into the above categories, applications to register as a new TR will be assessed in accordance with the usual procedures in EMIR after exit day.
If the UK enters an implementation period after Brexit, the changes made in the SI will not take effect on 29 March 2019.
What TRs should do now
TRs should let us know if they intend to offer services to UK markets from exit day.
Email: [email protected]
In line with the FCA’s intention to prepare for a range of scenarios, including one in which the UK leaves the EU without a deal and without entering an implementation period, we are now accepting advance applications for registration with the FCA.
Application to convert ESMA registration
If you are a UK TR that wishes to convert its ESMA registration into a registration with the FCA you should complete and submit the conversion form for UK TRs (with supporting documentation) by email by 28 March 2019. A UK TR should take steps to ensure that the submission is made in good time before this legal deadline.
Application to register a new UK legal entity and enter the TRR
If you are a UK TR, that is a UK legal entity and part of the same group as a TR with an ESMA registration, and wish to apply for registration in the UK and enter the TRR, you will need to notify the FCA that you wish to enter the TRR and submit a completed registration form (with supporting documentation) by 11 pm on 29 March 2019. A UK TR should take steps to ensure that the submission is made in good time before this legal deadline.
Your covering email should specifically state that you wish to be included in the TRR.
We have also published notes to assist you in completing the registration form.
Application for a new registration
If you are a new UK-based TR that does not fall into the categories above and wishes to apply for registration in the UK in order to provide TR services in the UK, you will need to submit a completed registration form after exit day with supporting documentation. We will process these applications from exit day once the UK regime is in full effect.
If you have any queries, please email us.