FCA update and guidance for firms that are still in the temporary permissions regime

The FCA has recently updated its guidance page for firms that are currently in the temporary permissions regime (TPR). Firms in the TPR were reminded that if they do not intend to seek full authorisation or registration in the UK by the FCA, they are still expected to cancel their temporary permissions. In addition, firms in the TPR that previously passported into the UK under Schedule 3 or Schedule 4 to FSMA, as well as firms applying for full UK registration/authorisation under the Payment Services Regulations 2017 or the Electronic Money Regulations 2011 (as appropriate), are reminded that they must submit their application before 31 December 2022. An application submitted after this date will be treated as invalid.

Cancelling temporary permissions

If a firm in the TPR fails to apply by 31 December 2022, the FCA will expect it to voluntarily apply to cancel its temporary permission and either enter the supervised run-off (SRO) regime (if eligible), from where it can run off its UK business, or leave the UK perimeter. Where firms do not do this promptly, the FCA will look to take action to cancel their temporary permission. The FCA has issued guidance on how firms can cancel their temporary permissions, which can be found here.

Firms in the TPR that are intending to become an appointed representative (AR) of a UK authorised person will need to submit a cancellation application before submitting their AR application. Firms will also need to contact [email protected] to notify the FCA of their plans. Firms with existing UK top-up permission will need to submit a Variation of Permission (VoP) application to vary their existing top-up permission, rather than submitting a new firm authorisation application. All other firms should submit a new firm authorisation application.

Guidance for FCA applications for authorisation

If you are in the TPR and still intending to submit an application for authorisation, the guidance page provides some important reminders of what the FCA expects in any application.

The FCA expects firms to take regulation seriously and plan how they will meet the applicable standards before they apply. A firm’s application should demonstrate that it is ‘ready, willing and organised’ to comply with the standards of the regulatory system. If substantive changes are required to an application after it has been submitted, which may indicate that a firm is not ready, willing and organised, the FCA may ask the firm to consider withdrawing its application.

The FCA has recently updated its guidance page for firms that are currently in the temporary permissions regime (TPR). Firms in the TPR were reminded that if they do not intend to seek full authorisation or registration in the UK by the FCA, they are still expected to cancel their temporary permissions. In addition, firms in the TPR that previously passported into the UK under Schedule 3 or Schedule 4 to FSMA, as well as firms applying for full UK registration/authorisation under the Payment Services Regulations 2017 or the Electronic Money Regulations 2011 (as appropriate), are reminded that they must submit their application before 31 December 2022. An application submitted after this date will be treated as invalid.

Cancelling temporary permissions

If a firm in the TPR fails to apply by 31 December 2022, the FCA will expect it to voluntarily apply to cancel its temporary permission and either enter the supervised run-off (SRO) regime (if eligible), from where it can run off its UK business, or leave the UK perimeter. Where firms do not do this promptly, the FCA will look to take action to cancel their temporary permission. The FCA has issued guidance on how firms can cancel their temporary permissions, which can be found here.

Firms in the TPR that are intending to become an appointed representative (AR) of a UK authorised person will need to submit a cancellation application before submitting their AR application. Firms will also need to contact [email protected] to notify the FCA of their plans. Firms with existing UK top-up permission will need to submit a Variation of Permission (VoP) application to vary their existing top-up permission, rather than submitting a new firm authorisation application. All other firms should submit a new firm authorisation application.

Guidance for FCA applications for authorisation

If you are in the TPR and still intending to submit an application for authorisation, the guidance page provides some important reminders of what the FCA expects in any application.

The FCA expects firms to take regulation seriously and plan how they will meet the applicable standards before they apply. A firm’s application should demonstrate that it is ‘ready, willing and organised’ to comply with the standards of the regulatory system. If substantive changes are required to an application after it has been submitted, which may indicate that a firm is not ready, willing and organised, the FCA may ask the firm to consider withdrawing its application.

To help those firms still in the TPR and looking to submit an application for authorisation, we have produced a helpful 10 point guide to take you through the process. Our guide will help you understand how to demonstrate you are ready, willing and organised, adhere to the regulators rules and future-proof your application. Download your copy using the button below.

Download Guide