Following the UK’s exit from the EU at 11pm on Friday 31 January 2020, the UK entered the transition period agreed as part of the Withdrawal Agreement between the UK and EU. The transition period is due to end at 11pm on Thursday 31 December 2020 and the Temporary Permissions Regime (TPR) to take immediate effect. Firms that have submitted a valid Notification or Part 4A application (and not withdrawn) will automatically enter the TPR.
A firm that is authorised to carry on regulated activities in the UK through Freedom of Establishment (FOE) or Freedom of Services (FOS) passporting will obtain a deemed Part 4A permission to carry on those activities for up to a maximum of three years from the end of the transition period, subject to HM Treasury’s power to extend the duration of the regime by increments of twelve months. A passporting firm that already has a top-up permission would obtain a deemed variation of that permission.
Therefore it is important that firms are operationally prepared to enter the TPR and are able to meet our regulatory requirements that will apply to them once they are in the TPR.
The full requirements of the TPR for branches are set out in the ‘Regulatory requirements for firms in TPR’. For firms in the TPR without a branch in the UK (cross border service providers) a more limited set of rules will apply.
Information in this section was included in a letter that we sent to all PRA-regulated firms on Tuesday 1 September, Letter from Sam Woods ‘Temporary permissions regime – operational readiness’.