Today is the last day of the transition period. At 23.00, the UK financial system leaves the umbrella of EU control.
Those of us that work within the sector, however, know that this simply means the work done within the UK now follows UK rules. The work done in in the EU and the rest of the world continues to follow exactly the same rules as before, in what is an international industry. Firms have had to make the choice of closing down some parts of their overseas business or expand into running a regulated business within the Union.
Whether you are a Remainer or Brexiteer, there is no argument that the change means additional costs and the movement of workload. The associated benefits and detriments depend on your point of view.
Last week, I reminded you to check your processes with the UK government website– the same one that has been seen and heard on TV and radio for a couple of months now.
Even now, with 2000 pages of terms published, the site still shows ‘More guidance about this will be published as soon as possible’. I can only reiterate the need to stay on top of what is happening in your field and ensure that any changes are implemented quickly in your organisation.
Temporary Transitional Power (TTP) and Handbook Changes
The FCA has published more information on Brexit impacts on the Handbook and Binding Technical Standards with the PRA and the Bank of England. These changes are outlined in Handbook Notice 83.
As previously mentioned in these updates, the TTP applies transitional provisions to financial services legislation for a temporary period. Mostly these apply until 31 March 2022, but there are some areas where the TTP will not apply.
Firms will be able to see which changes will apply to them by reviewing the new Handbook site and the now updated Transitional Directions page on the FCA website.
The final countdown
The FCA’s ‘Brexit Countdown’, (not to be confused with the FSTP version!) gives a last minute reminder what is expected of firms and the way customers are to be treated going forward. Take a few minutes to read it over here.
Happy New Year…
In Edinburgh, the main clock on Princes Street always runs 3 minutes fast and has done for the past 118 years- positioned above Waverley Railway station, it means you have a few extra minutes to catch your train. Each Hogmanay, the clock is corrected, just for a day.
Tonight, it will not be put back and Scotland will leave 2020 three minutes earlier than the rest of the UK. There, at least, we can put it behind us as soon as possible.
As always support and information of financial risk and regulation can always be received from your regular contact or by clicking here.