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.
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:
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.
This consultation covers amendments to BTS in relation to the Capital Requirements Regulation and Directive which we share responsibility for with the PRA. FCA-authorised firms should take account of the PRA’s Consultation Paper 26/18 for the detail of the proposed amendments. You can provide any responses to our consultation either directly to us or to the PRA. We will share responses with each other but encourage firms to respond to the PRA where possible.
See CP18/28 (PDF) - in particular paragraphs 5.38–5.41 - for more information.
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:
In Chapter 4 we list stakeholders by the Handbook sourcebook that interests them.
This paper also covers amendments to BTS relating to:
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.
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.
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