Read the latest information available for you and your clients.
Our current Brexit position - October 2020
On Friday 31 January 2020, the UK ended its membership of the EU. At this point, it entered a transition period during which EU law and regulation continues to apply while a Free Trade Agreement (FTA) is negotiated.
At this stage it remains uncertain what level of agreement will be reached before the end of the transition period on 31 December 2020.
This is likely to cause continuing uncertainty until there is more clarity on the terms of any agreement, as well as the extent to which the agreement will cover existing trade in goods and services, including financial services.
As part of our Brexit planning we have considered a range of scenarios, including the possibility of a FTA not being in place by the end of the transition period, and put in place arrangements to mitigate any potential disruption for our customers, clients and operations.
We will continue to follow developments closely and regularly review the arrangements we have in place, including those for a ‘cliff edge’ scenario. We have extensive experience of adapting to regulatory change and working across borders.
Our priority is to ensure we are in the best possible position to provide our customers and clients with continuity of service, regardless of the scope and terms of any FTA which takes effect between the UK and the EU when the transition period comes to an end.
Please read our Brexit Q&A for more information.
The information on this site is for qualified financial advisers and must not be relied on by anyone else. If you're not an adviser, please go to our customer website for more information about our products and services.
With the end of the withdrawal agreement on 31 December 2020, and to ensure a smooth transition with or without a Free Trade Agreement, the FCA opened their Temporary Permission Regime (TPR) on 30 September 2020 enabling firms with EEA domicile funds to continue to ‘passport’ these into the UK after 31 December 2020.You can read the latest FCA update from 30th September 2020.
The FCA introduced a Temporary Permissions Regime (TPR) as part of no-deal Brexit planning. This lets investment managers with funds domiciled in the European Economic Area (EEA) continue to operate in the UK in the event of a no deal Brexit. Typically these funds will have the prefix LUX (Luxembourg) or IE (Ireland) ISIN prefixes on our platforms.
To qualify for the TPR, the investment manager had to register its fund(s) with the FCA. Registration had to be made at fund level, not in aggregate as a fund manager.
If an investment manager failed to register a fund(s), or decided it wants to stop passporting fund(s) after Brexit, the FCA automatically assumed the fund(s) fell under the Financial Services Contracts Regime (FSCR). UK investors would still be able to stay invested in a fund (the fund manager may withdraw access sooner), and would be allowed to sell-out either incrementally or in totality. They would not, however, be able to buy into the fund and it would be closed to new investments.
The FCA confirmed that the TPR Register would only be available for public viewing after 31 December 2020. We also believe that the Register would only include the fund name without any unique identifier such as a CitiCode or ISIN.
The FCA is re-introducing the TPR as part of its no deal Brexit planning for 31 December 2020, and it will work in the same way as noted above for the position pre Withdrawal Agreement. The TPR opened on 30 September 2020 but will not be published until 1 January 2021.
We’re writing to all fund groups with EEA-domicile funds available on our platforms, asking for details about which funds have been registered under TRP and which default to FSCR. Our aim is to make sure our platforms offers access to those funds registered with TPR on 1st January 2021, but cannot categorically guarantee this given the TPR Register will not be published until 1 January 2021.
We’ll make every effort to provide you with the necessary reassurances, but you should contact the fund group if you have any specific concerns and to check how this might impact your clients.