The Temporary Permissions Regime ('TPR') was designed in response to Brexit to ensure that European firms operating in the UK via a passport could continue operating temporarily while they seek full authorisation in the UK.
It’s been nearly 2 years since Brexit and the introduction of the regime. How time has flown; with COVID-19 and the economy now heading towards a recession, it wouldn’t surprise me if your Part 4A authorisation is the last thing on your mind.
Unfortunately, time waits for no one.
What we are seeing
The FCA has been clear on the action it will take against firms that fail to apply during their allocated landing slot. So far the FCA has revoked the permissions of four companies. Why wait until the last minute to make a move?
There are four options you can take:
Will you apply for authorisation as a branch
Will you apply for authorisation as a subsidiary
Will you seek to rely on an exclusion
Will you cease regulated activities in the UK
What steps do you need to take next?
You should have now received formal directions from the FCA regarding your relevant landing slot. Check that your contact details are up to date. The direction will include details on when you should submit your application. There are two types of applications: - for full (non-temporary) Part 4A permission - to vary your existing Part 4A permission if your firm has a UK top-up permission
You will not benefit from trying to submit your application early. Any applications submitted before their landing slot will be disregarded by the FCA and destroyed.
Once your landing slot application is open, you will need to be ready, willing and organised to submit your FCA authorisation application.
You will need to demonstrate that your firm is able to meet the threshold conditions. Firms will need to upload supporting documentation. Examples include; a comprehensive business plan and circa 12-14 policies. Financial forecasts, P&L accounts and balance sheets will show your financial readiness.
If you decide to cease trading you can cancel your permissions. If the firm fails to demonstrate that it meets the requirements or doesn’t apply during its landing slot, the FCA has the power to remove its permissions or move it into the financial services contract regime.
All firms need to pay a fee when they submit their application. This will vary depending on the size and complexity of your application and your annual regulated revenue. Click here for more info on TPR fees.
MEMA Consultants has the relevant experience to help you prepare well in advance. If you have any questions about the process. Please feel free to reach out to our team today.