We continue to prepare for a range of scenarios, including one in which the UK leaves the EU without a deal and without entering an implementation period.
On 5 October 2018 the Treasury published a draft of the Trade Repositories (Amendment and Transitional Provision) (EU Exit) Regulations 2018 Statutory Instrument (SI). This SI makes provision for the FCA to register trade repositories operating in the UK once the UK leaves the EU. It is not intended to make policy changes, other than where appropriate to reflect the UK’s new position outside the EU.
To support a smooth transition to the new regime for trade repositories (TRs) in the UK and minimise disruption to users of TRs, the draft SI includes 2 registration regimes for firms:
- A conversion regime. This will allow TRs established in the UK to convert their ESMA registration into registration with the FCA.
- A temporary registration regime. This will offer temporary registration to TRs that apply for registration with the FCA before exit day, if they are a UK legal entity and are part of the same group as a TR with an existing ESMA registration. This will allow time for us to assess these applications. This regime is distinct from the Temporary Permission Regime for inbound passporting EEA firms and funds.
For firms not falling into the above categories, applications to register as a TR will be assessed in accordance with the usual procedures in the regulation.
We will consult in Q4 2018 on the fees that TRs will have to pay.
A further SI will be published later this year that will contain further provisions in relation to TRs. This SI will include general TR requirements, supervision and enforcement provisions relating to TRs and equivalence of third country TRs.
TRs should let us know if they intend to offer services to UK markets from exit day.
Email: [email protected]
The Treasury intends to lay the SI before Parliament in the Autumn. If, as expected, the UK enters an implementation period after Brexit, the changes made in the SI will not take effect on 29 March 2019.
We are consulting on 2 relevant Binding Technical Standards to reflect the changes introduced through this SI.
We will consult on updating our rulebook and other relevant Binding Technical Standards in due course to reflect the changes that will be introduced by the further SI to be published later this year containing other provisions in relation to TRs.
|5 October 2018||Draft SI published|
|Q3 2018||FCA consultation on applicable technical standards for TRs|
|Q4 2018||FCA fees consultation|
|Q4 2018||SI laid before Parliament|
|Q4 2018||FCA to offer pre-application support|
|Early 2019||Application window opens|
|29 March 2019||Responsibility for the regulation of TRs in the UK transfers to the FCA|