Context
The FCA has updated its webpage for firms in its Temporary Permissions Regime (TPR) which don’t meet its expectations, and the conditions for firms leaving the TPR.
Key points to note
The FCA has reiterated its intention to ensure that firms cannot expand their UK business while in the TPR and will take steps to remove them from the TPR if they don’t leave voluntarily. The FCA has set out four scenarios where action would be taken on these firms. These are where:
- firms fail to respond to mandatory information requests
- firms regulated under the Financial Services and Markets Act (FSMA) missed their landing slot or failed to apply by 31st December 2022
- firms do not intend to apply for full authorisation
- firms whose application for full authorisation is rejected, withdrawn, or refused.
A firm may avoid the FCA acting if it voluntarily applies to cancel its temporary permission. If eligible, these firms can enter either supervised run-off (SRO) or contractual run-off (CRO) (where appropriate).
Next actions
None – for information and awareness.