UK contractual continuity regime post Brexit
04 January 2019
EEA firms currently passporting into the UK are contingency planning for a “hard Brexit” on which their authorisation to continue to conduct regulated activities in the UK ends abruptly
EEA firms currently passporting into the UK are contingency planning for a "hard Brexit" on which their authorisation to continue to conduct regulated activities in the UK ends abruptly. Following publication of details around the temporary permissions regime (TPR) HM Treasury has now published the legislative framework to allow those EEA firms that do not enter the TPR or which exit the TPR without authorisation to continue to service existing contracts for a limited period to enable an orderly wind down of their UK business. This will be permitted either via Supervised Run-off with temporary limited permissions or Contractual Run-off with temporary exemptions depending upon the circumstances of the firm in question.
This bulletin helps firms to understand the availability, scope and regulatory implications of the run-off regimes. This understanding is crucial both for EEA firms that will not be authorised or deemed authorised to conduct regulated activities in the UK post Brexit and also for UK clients and counterparties of such EEA firms.