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FCA temporary permissions regime (TPR) notification window re-opens

  • United Kingdom
  • Brexit
  • Financial services and markets regulation
  • Financial institutions - Asset managers and funds

30-09-2020

The FCA updated its temporary permissions regime ("TPR") pages to announce that it is re-opening the notification window with effect from today, 30 September 2020, to allow firms and fund managers that have not yet notified to do so before the end of the transition period.  Updated notifications must be received before the end of 30 December 2020.

This will also be an opportunity for fund managers to update their previously submitted notifications, if necessary.  Fund managers that want to update their previously submitted notification should notify the FCA by the end of 9 December 2020 at the very latest confirming this and including their firm reference number (FRN).  Fund managers should then expect to be able to submit their updated notification from 14 December 2020.  As previously, the FCA expects fund managers to only submit their updated notification when they are certain that all the correct funds are included.

The purpose of the TPR

The TPR is designed to help firms and funds continue their UK business with minimal disruption when the passporting regime ends at the end of the transition period.

Considerations for inbound firms

In particular, if you are an inbound firm, the TPR will allow you to continue operating in the UK within the scope of your current permissions for a limited period after the end of the transition period, while you seek full UK authorisation, if required. The TPR covers both your firm’s pre-existing business and any new business entered into during the TPR.  Firms that have already submitted a notification therefore need take no further action.

Considerations for fund managers

If you are a fund manager marketing funds in the UK via a passport, your funds can enter the temporary marketing permission regime (TMPR), which will allow you to continue temporarily marketing in the UK.

Fund managers should continue to follow current processes via their home state regulator for marketing new funds in the UK and should allow sufficient time for notifications to be received and processed by the FCA to ensure that any new funds are eligible for the TPR. Fund managers can continue to create new draft notifications on Connect to monitor their fund population. If new funds have been added to a fund manager’s population since an earlier notification was submitted, the new funds will not be included in the temporary marketing permission regime unless fund managers request to update their notification and include them in that updated notification.

Operators, depositories and trustees of funds in the TMPR will need to continue to comply with all relevant marketing and reporting requirements.

EU law during the transition period

During the transition period, EU law remains applicable in the UK in accordance with the EU-UK Withdrawal Agreement. This means that firms must continue with implementation plans for EU legislation that is still to come into effect before the end of December 2020.

Navigating the implementation period and TPR regime

In light of the above, we have updated our various flowcharts to help navigate the implementation period and TPR regime:

How Eversheds Sutherland can help

Since June 2016, our lawyers, consultants and International Funds Net (FundsNet) team have advised various institutions passporting into the UK from EU27 Member States and passporting from the UK into the EU27 on Brexit planning and Brexit related issues.