On 24 July 2018, the FCA published updated information on their website concerning the temporary permissions regime for inbound passporting EEA firms and funds (the "Temporary Permissions Regime"). For the purposes of this update, we will focus on the Temporary Permissions Regime insofar as it concerns the notification of EEA funds marketing into the UK. Firstly, it is important to note that the Temporary Permissions Regime is intended to come into effect only if the UK leaves the EU without agreeing a deal. If this occurs, the UK will become a third country and EEA funds will no longer be able to passport into the UK. The Temporary Permissions Regime will provide EEA funds who have already availed of the passport, the opportunity to continue marketing in the UK for a limited period (probably a maximum of 3 years) following Brexit within the scope of their current passport permission. During this period, EEA funds will be required to seek recognition from the FCA if they wish to continue marketing in the UK beyond this period.
In order to avail of the Temporary Permissions Regime, EEA funds or their managers will need to notify the FCA of the funds which they wish to continue marketing in the UK. The FCA expect that they will begin accepting these notifications in early January 2019, and notifications must be made during the "notification window", which will close prior to the UK leaving the EU on 29 March 2019. Once the notification window has closed, EEA funds will not be able to continue marketing in the UK if they have not filed a notification with the FCA.
As noted on the FCA website, the Treasury has published the first of a number of pieces of legislation that will establish the Temporary Permissions Regime. In terms of next steps, the FCA will consult fully on their proposals in Autumn 2018. In the meantime, firms who have not already completed the FCA online survey may do so here.
How Maples Can Help
At Maples, we will be monitoring developments over the coming months to ensure we can guide you through Brexit as smoothly as possible. The Maples Global Registration Services team ("Maples GRS") will be in a position to complete the required notifications to the FCA in the event that the Temporary Permissions Regime comes into effect.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.