With the deadline for Brexit looming, the U.K.’s Financial Conduct Authority (FCA) is launching a consultation on the future regulation of international firms operating in the U.K.
The FCA said that it is expecting to see an increase in the number of international firms seeking registration in the U.K. as it prepares to leave the European Union (EU) — including both EU firms and other international financial firms.
The consultation aims to assess how the unique risks of international firms can be mitigated, and when a foreign firm should become authorized as a U.K.-incorporated firm.
“With the Brexit transition period due to end on [December 31 2020], firms that have registered for temporary permission will need to consider plans for full authorisation,” said Nausicaa Delfas, executive director international at the Financial FCA.
“Today we are setting out our expectations for the future authorisation and supervision of international firms, to ensure appropriate protection for users of financial services,” Delfas added.
The deadline for submissions to the consultation is Nov. 27.
“International firms are a key contributor to the success of the UK financial services market. This consultation will give [European] and [non-European] firms a chance to feedback on our future approach to the regulation of international firms,” Delfas said.