Updates to the FCA’s directions under the Temporary Transitional Power

Regulatory Updates | 26/09/19

The Financial Conduct Authority (FCA) has updated and published draft directions under its Temporary Transitional Power (TTP). The TTP gives the FCA flexibility in applying post-Brexit requirements, allowing firms to transition to a new UK regulatory framework. The directions would only come into effect on exit day if the UK leaves the EU without an implementation period.

Under the directions, firms do not generally need to prepare now to meet the changes to their UK regulatory obligations that are connected to Brexit. However, in some cases where the 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. The FCA set out its approach in its February statement.