The U.K. Financial Conduct Authority has published a second consultation on proposed changes to the FCA Handbook and guidance to ensure a functioning legal and regulatory framework for financial services in the event of a "no-deal" scenario whereby the U.K. exits the EU on March 29, 2019 without a ratified Withdrawal Agreement in place and there is consequently no transitional period for firms. The proposed amendments will not take effect on exit day if the U.K. enters into a transitional period.
The consultation includes the FCA's further proposals in relation to those Binding Technical Standards that it has been empowered by HM Treasury to amend prior to Brexit and to maintain afterwards. Since the FCA's first consultation on Brexit-related Handbook changes in October 2018, HM Treasury has published further policy notes and/or financial services "onshoring" statutory instruments with proposed amendments to retained EU law. Many of the FCA's proposals on the BTS are consequential in nature and follow the amendments proposed in the statutory instruments.
The consultation covers:
A "cut-off" point of 23.59 GMT on October 24, 2018 has been used by the FCA for its consultation, which covers the BTS that have either been published in the Official Journal of the European Union or published in near final form by the European Commission by that time. Where BTS have not yet reached this stage in the EU, adjustments will need to be made at a later date by HM Treasury to onshoring legislation and/or to regulators' powers to amend technical standards. The FCA will need to consult further on those BTS in due course.
Comments on the consultation are requested by December 21, 2018. The FCA expects to provide feedback on the consultation and publish near-final instruments in early 2019.
View the consultation paper (FCA CP 18/36).
View the feedback form.
View details of the FCA's earlier consultation on BTS (FCA CP18/28).
View details of the FCA's proposals for a temporary permissions regime (FCA CP 18/29).
View details of the proposed arrangements for Credit Rating Agencies and Trade Repositories.