On 19 November 2020 the Luxembourg supervisory authority for the financial sector, the CSSF, issued press release 20/23 (the 20/23 Press Release) on a communication from the United Kingdom (UK) Financial Conduct Authority (FCA) regarding the post-Brexit temporary permissions regime in the UK (TPR) (the FCA Communication).
The FCA has reminded Luxembourg firms and funds passporting into the UK that the TPR will enable them to keep operating in the UK from the end of the transition period (ie from 31 December 2020), if necessary. In order to benefit from the TPR, such Luxembourg entities are invited to notify the FCA of their intention to do so. Notifications have to be submitted before 30 December 20201.
The FCA Communication covers the following reminders.
- The notification window for the TPR has reopened on 30 September 2020 for firms passporting into the UK, authorising any Luxembourg solo-regulated firms and fund managers to proceed to the relevant notification with the FCA or permitting Luxembourg fund managers which have already notified the FCA to update their notification, if required;
- If Luxembourg firms hold a passport and have already notified to be in the TPR but:
- they do not intend to do any business in the UK: such firms are required to withdraw their TPR notification; and
- they have no existing contractual arrangements in the UK: they must cancel their passport;
- Any Luxembourg firm with a passport to the UK which does not submit a TPR notification but needs to perform an existing contractual arrangement in the UK will automatically enter the UK’s Financial Services Contracts Regime (FSCR), to allow them to close their UK business smoothly. Firms in the FSCR will not be able to write new business in the UK.
The FCA Communication also brings Luxembourg firms' attention to its consultation paper dated 23 September 2020 on general expectations for international firms that require FCA authorisation, should they contemplate embarking on regulated activities in the UK. Luxembourg firms seeking a UK authorisation will need to have an active place of business in the UK.
The CSSF advises liaison with the FCA for any question(s) related to TPR notifications.
Should you have any further queries, please contact Ogier in Luxembourg.
- Author's remark