The FCA has today published new proposals on how it will prepare for the  possibility that the UK will leave the European Union on 29 March  without “an implementation period.”

The so-called hard Brexit option, where no transition deal or new arrangements are in place, is seen as an increasing possibility in the City as debate on the Brexit Withdrawal process intensifies with significant opposition of Prime Minister Theresa May’s current EU Withdrawal Proposal.

The FCA says it is working to ensure as “smooth a transition as possible” as the UK readies to leave the European Union.  

Earlier this year, it set out the FCA’s role in preparing for Brexit.

This latest consultation paper mainly focuses on a range of Handbook and BTS (Binding Technical Standards) amendments which were not included in its earlier consultation papers issued in October. 

It also consults on:

• further amendments to the Handbook regarding the Temporary Permissions regime;
• amendments to the Handbook to reflect the new Credit Rating Agency and Trade Repository regimes; and
• the FCA’s  approach to non-Handbook guidance and its approach to forms that appear in the Handbook.

The FCA says it is not proposing any policy changes unrelated to Brexit in the consultation paper.

Nausicaa Delfas, executive director of International at the FCA and a key FCA manager for Brexit, said: “The FCA is preparing for a range of scenarios.  We have published further proposals to prepare for the possibility the UK leaves the EU in March 2019 without an implementation period.

“Our aim is to provide certainty and confidence for firms operating in the UK. These proposals will ensure we have a robust regulatory regime from day one, and a smooth transition for EEA firms and funds currently passporting into the UK.”

The consultation is open until 21 December 2018.