Brexit and updated directions under the FCA's Temporary Transitional Power

The title to this blog will be pretty obscure to most people, even by Brexit standards.

It is worth highlighting, however, that the Financial Conduct Authority (FCA) has been busily working  to try and make the on-shoring to the UK of EU - inspired financial services regulation user-friendly in the event of a "no deal " Brexit.

On 26th September 2019, the FCA updated and published draft directions under its so - called Temporary Transitional Power allowing regulated financial services firms to phase in changes to regulation over a period rather than being with them all at once , should there be a "no deal" Brexit.

The updated  draft directions will apply until 31st December 2020 rather than to 30th June 2020 as previously and will make changes to the earlier  directions made on 28th March 2019 in the context of "prudential requirements" and  "payment services" and will apply a "standstill direction" to allow EEA Central Banks and the European Central Bank to continue to rely upon their status as exempt persons until 31 December 2020.

Regulated financial services firms will continue, however,  to be subject with immediate effect from "no deal" Brexit day (currently, 11pm UK time on 31st October 2019)  to certain changes in regulation , including changes to the MIFID II and EMIR reporting regulations insofar as they will  apply in the UK post-Brexit.

There is  detailed work going on at various UK governmental and regulatory levels to try and mitigate any adverse impact of a "no deal" Brexit and, given the importance of the financial services industry to the UK economy, the work being done in the financial services sector is particularly noteworthy.