With 73 days until the end of the transition period, the true impact of Brexit will hit the British general public on the first of January next year. The new rules for taking cats, dogs, and ferrets (!) to the EU apply, and if you haven’t already done so, it’s now too late to arrange their travel for your New Year’s Day trip to France.
2020 has been a strange year for us all, with COVID-19 having a huge bearing on day-to-day life. This upheaval will continue in 2021, compounded by the complexities of Brexit. With negotiations still going on over final terms for trade in Europe and the reality of ongoing social distancing and ‘working from home’, people can feel overwhelmed.
There’s a lot of important information out there- not a lot of it is good, but is key to our health, our firms, and our customers. Because of this, FSTP felt it was important to highlight some of the notable points being made by the regulators and trade bodies across financial services regarding the ‘new normal’ of a post Brexit industry.
Over the coming weeks, FSTP will provide an outline of the main Brexit headlines in our industry. It doesn’t attempt to be comprehensive, but hopefully it might highlight some points where action needs to be considered in these last few days. In this first publication, we’ll give a quick recap of the main points from the last month or so. As we go forward, we’ll feature some specific areas of interest.
If you have any concerns or areas in which you’d like support, you can always contact FSTP through your usual connection, or drop us a line here
News from the Regulators
- Temporary Transitional Powers
The Temporary Transitional Powers (TTP) given to the UK regulators by the government runs until 31 March 2022. This means that, between now and then, most rules and guidance will stay the same.
Going forward, the PRA and FCA will adapt the UK regulatory environment to better represent the sector following the UK’s release from the EU. These changes will be rolled out as normal during that time, going through the usual rounds of discussion and draft Sourcebook pages.
Unfortunately, there are some key areas where change is happening more rapidly. The FCA Handbook has already been updated, and the FCA requires all firms to be ready to comply with the new obligations from the start of 2021. This includes a substantial part of the directions for the investment sector as well as new rules affecting the Client Asset (CASS) sourcebook, mortgage lending in the EEA and payment services.
The FCA published an overview of the TTP with links to the relevant documents at the start of the month. It is available here.
- Dear CEO letter
The PRA/Bank of England and the FCA have issued a ‘Dear CEO’ letter to all UK and international banks operating in the UK, highlighting their role in maintaining financial stability during this time of change.
They also want firms to ensure that they have structures in place to avoid disruption to their wholesale & retail banking services and payments across the Single European Payment Area (SEPA). Data management and how organisations plan to meet their trading obligations are also stressed.
The full letter is available here
One last reminder. If you plan to take your ferret to the EU at Easter, you need to make an appointment with your vet now.