CP18/28: Brexit: proposed changes to the Handbook and Binding Technical Standards – first consultation

Open consultation: CP18/28
10/10/2018
10/10/2018
Consultation closes
07/12/2018
Consultation feedback and final rules
Q1 2019

In this paper, we publish our proposals on how we will amend our Handbook and EU derived binding technical standards (BTS) if the UK leaves the EU without an implementation period in place. We also set out our proposed approach to EU non-legislative material such as Level 3 Guidelines and Q&As.

Read CP18/28 (PDF 9.62MB)

We are planning for a variety of outcomes to the Brexit negotiations. One of these outcomes is the UK leaving the EU on 29 March 2019 without an implementation period. If this happens, we must ensure there is a functioning regulatory framework in place.

For this scenario, we will need to amend our Handbook in line with the Government’s legislative changes and to reflect the UK’s new position outside the EU. In the same way, we will need to amend EU binding technical standards, which are detailed EU rules, for which we will gain responsibility.  

For the most part, the amendments proposed are straightforward changes that update references to:

  • EU legislation
  • UK law which relates to or refers to the EU
  • EU institutions and concepts
  • the European Economic Area (EEA)

In a small number of cases we have found more than one solution to resolve an issue. Where this is the case we set out our chosen proposal and welcome feedback on our proposed approach.

All our proposals are aimed at ensuring our Handbook and the BTS continue to function when the UK is no longer a member of the EU.

We do not propose wider policy changes and are not making other changes unrelated to Brexit to our Handbook or to BTS.

Who this applies to

Given the breadth of our proposals, this consultation affects a significant number of entities we regulate. Consequently, we want to hear from the widest possible range of stakeholders across sectors, including industry bodies and consumers.

This paper covers proposed amendments to a significant proportion of our Handbook, including:

  • prudential rules for firms regulated only by us (not firms regulated jointly by us and the PRA)
  • conduct of business rules
  • rules for UK funds and fund managers covered by EU fund management legislation (eg UCITS and AIFMD)
  • rules affecting other market participants, including UK investment firms covered under EU markets legislation (eg MiFID)

In Chapter 4 we list stakeholders by the Handbook sourcebook that interests them.

This paper also covers amendments to BTS relating to:

  • markets and financial market infrastructure
  • fund management
  • credit ratings agencies and trade repositories (entities which we will have a new responsibility for supervising after Brexit)
  • short selling practices.

The paper also sets out our approach after Brexit to EU non-legislative material, and so will be of relevance to any stakeholders with an interest in such material.

What you need to do

The consultation period is eight weeks, so please send us your comments by 7 December 2018. We can take responses through our online form or in writing. 

We also want to know about any significant implementation challenges you would face with the proposed amendments, so that we can work with you to address the challenges you face. We do not expect firms and others subject to our proposals to prepare to make any changes now.

We intend to give feedback in early 2019 and publish final versions of these materials before exit day. We may publish further amendments to the proposals in this paper in later publications.

Online response form

You can also:

  • email your responses to [email protected]
  • write to us at: Handbook Review Team, Financial Conduct Authority, 12 Endeavour Square London E20 1JN