Updates to Directions
- FCA has updated and published draft directions under temporary transitional power.
- TTP allows flexibility in applying post-Brexit requirements, allowing firms to transition.
- Would only come into effect on exit day if UK leaves without implementation period.
- Under the directions, firms do not generally need to prepare now to meet the changes.
- However, in some cases where FCA considers it important for its objectives, it expects firms to take reasonable steps to comply with post-exit obligations from exit day.
- For example in relation to key reporting obligations; set out approach in February 2019.
- Draft directions published today under TTP update directions made on 28 March 2019.
- Alongside this FCA also updated explanatory note providing guidance on use of TTP.
- The draft directions are being published now to give firms time to consider changes.
- Extending the proposed duration of directions from 30 June 2020, to 31 December 2020.
- Updating the provisions relating to prudential requirements in the directions to reflect new HM Treasury legislation and FCA exit instruments published since 29 March 2019.
- Revoking certain directions in relation to payment services, provided by EEA credit institutions in the financial services contracts regime, as these are no longer needed.
- Applying 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.
- See following drafts: draft transitional direction and prudential transitional direction.
- Draft annex A – application of the standstill in the transitional direction to amendments made in statutory instruments and exit instruments amending technical standards.
- Draft annex B – application of the standstill to amendments made in the handbook.
- FCA have also updated an accompanying explanatory note for the above directions.
- FCA does not expect to make significant changes to draft directions in advance of exit.
- Firms can make FCA aware of any changes they believe are not fully accounted for.