The Financial Conduct Authority (FCA) is taking a hardline approach to European firms temporarily operating in the UK.
The watchdog has told European companies that if they wish to remain in the temporary permissions regime (TPR) that they need to meet its standards.
The regime was designed to ensure that European firms operating in the UK via a passport, when the Brexit transition period ended, could continue operating temporarily while they seek full authorisation in the UK.
The TPR should only be used by firms who want to operate in the UK in the long-term and meet the standards to do so.
Companies may be asked to stop undertaking new business or could be removed from the TPR, “if they miss their ‘landing slot’, fail to respond to mandatory information requests, have no intention in applying for full authorisation, or if their authorisation application is refused”, the FCA said.
Open for business
The UK regulator has already cancelled the temporary permissions of four firms that “despite multiple opportunities, did not respond to mandatory information requests”.
Companies that have had their permissions cancelled can no longer conduct regulated business in the UK and will be committing a criminal offence if they do so.
Emily Shepperd, executive director of authorisations at the FCA, said on 18 January 2022: “The UK is open for business, but not to firms who do not meet our regulatory expectations.
“We expect firms operating under the regime to be responsive to our requests for information, and that are coherent in their business planning. We will continue to act against firms that fail to meet our standards.”