We set out our proposed approach international firms providing or seeking to provide financial services that require authorisation. We do not propose to change existing rules or provisions.
Why we are consulting
We want international firms that need authorisation to understand our approach and expectations. We explain the factors we will consider when we assess them against minimum standards, which will be relevant when they apply for authorisation and when we supervise them. We also set out the circumstances where these international firms could present higher risks of harm and how those risks can be mitigated.
We are asking for feedback on our approach. After consultation, we expect to publish a finalised document explaining our general approach to international firms. That document will supplement existing guidance.
Who this applies to
This consultation applies to international firms that require authorisation, including:
- European Economic Area (EEA) firms that have applied for authorisation in the UK, or intend to seek authorisation in the future, including those which have notified (or intend to notify) for the Temporary Permissions Regime
- international firms from non-EEA countries that have applied or intend to apply for authorisation in the UK, or are already authorised in the UK
Background to our approach
We believe that the approach that we have applied to date has been appropriate and proportionate. However, we want to publicly set out our approach and the factors we take into account.
This is especially because we anticipate an increase in the number of international firms looking to be authorised in the UK. Currently, most international firms in the UK come from the EEA using an establishment or services passport, or through exemptions available under EU law. After the EU withdrawal transition period, EEA firms will no longer be able to operate in the UK in the same way.
This consultation has now closed. We will publish feedback on responses and issue a Policy Statement once we have reviewed your comments.