Previous TTP updates

We have published the following statements and publications as well as the other updates listed on this page:

• Brexit – what we expect firms and other regulated persons to do now[3] (1 February 2019)
• PS19/5: Brexit Policy Statement[4] (28 February 2019)
• FCA announces extension to its use of the temporary transitional power[5] (25 July 2019)
• Updates to the FCA's directions under the Temporary Transitional Power[6] (26 September 2019)

1 October 2020

On 1 October, we published the following draft TTP directions:

• our main transitional directions[7] as well as:
  • Annex A[8]
  • Annex B[9]
  • our explanatory note[10]
• the FCA prudential transitional direction[11], including its Annex on page 10

The final directions can be accessed on our transitional directions[12] page.

30 April 2020

HM Treasury published a written ministerial statement[13] on 25 March 2020, outlining its intention to retain the regulators’ Temporary Transitional Power (TTP), and shift its application so that it is available for use by the UK financial services regulators for a period of 2 years from the end of the transition period.

We are now confirming that, after the transition period, we intend to apply the TTP on a broad basis and to the same areas previously communicated. We intend to grant transitional relief from the end of the transition period until 31 March 2022.

This means that regulatory obligations on firms will generally remain the same as they were before the end of the transition period for that temporary period. It also means that, generally, UK regulated firms will not need to complete preparations to implement changes in UK law arising from the end of the transition period by December 2020.

There are specific areas where we will not grant transitional relief[3]. In these areas, we continue to expect firms and other regulated entities to take reasonable steps to comply with the changes to their regulatory obligations by the end of the transition period. The detail of how and to what the TTP applies will be set out in the annexes to the TTP directions. We will publish updated draft directions and annexes in due course, which will include details on the application of the TTP in relation to new EU legislative requirements that become applicable during the transition period.

Incoming European Economic Area (EEA) firms should note that the TTP does not apply to the temporary permissions regime.

We are coordinating our approach with the Bank of England and the Prudential Regulation Authority, which have also published a statement[14] on the TTP.

See the links to our previous draft transitional directions, annexes and explanatory note:

• Draft Transitional Direction[15] (PDF)
• Draft Prudential Transitional Direction[16] (PDF)
• Draft Annex A[17] (PDF) – application of the ‘standstill’ in the Transitional Direction​​​​​​ to amendments made in Statutory Instruments and Exit Instruments amending technical standards
• Draft Annex B[18] (PDF) – application of the ‘standstill’ in the Transitional Direction ​​​​​​to amendments made in the FCA Handbook
• Explanatory note[19] (PDF) for these directions

26 September 2019

We have published further draft directions under the Temporary Transitional Power and updated our explanatory note providing guidance on the use of the power. The draft directions are intended to replace the 28 March 2019 directions previously made. We intend to use this power to ensure that firms and other regulated entities do not generally need to prepare now to meet the changes to their UK regulatory obligations that are connected to Brexit. 

The main draft updates relate to the following areas:

• We have extended the proposed duration of the directions issued under the temporary transitional power from 30 June 2020 to 31 December 2020.
• We have updated the provisions relating to prudential requirements in our directions to reflect new HM Treasury legislation and FCA exit instruments published since 29 March 2019. Our policy approach has not changed.
• The new main FCA transitional direction revokes certain directions in relation to payment services, provided by EEA credit institutions in the financial services contracts regime, as these are no longer needed, because of legislative amendments made by the Government.
• We have applied the standstill direction to allow EEA Central Banks and the European Central Bank to continue to rely upon their status as exempt persons for the duration of the transitional relief.

We would like to remind firms again that there are specific areas where we will not be granting transitional relief. In these areas, we continue to expect firms and other regulated entities to take reasonable steps to comply with the changes to their regulatory obligations by exit day.

We do not expect to make significant changes to our draft directions in advance of exit day. Firms can contact the FCA on the impact of its use of the Temporary Transitional Power to make us aware of any specific changes that they believe are not fully accounted for.

Read the directions (with changes tracked against the versions made on 28 March 2019):

• Draft Transitional Direction[16] (PDF)
• Draft Prudential Transitional Direction[17] (PDF)
• Draft Annex A[18] (PDF) – application of the ‘standstill’ in the Transitional Direction​​​​​​ to amendments made in Statutory Instruments and Exit Instruments amending technical standards
• Draft Annex B[19] (PDF) – application of the ‘standstill’ in the Transitional Direction ​​​​​​to amendments made in the FCA Handbook 

We have also updated an accompanying explanatory note[20] (PDF) for these directions.

25 July 2019

To reflect the extension of the Article 50 period to 31 October 2019 (‘exit day’), we intend to extend the proposed duration of the directions issued under the temporary transitional power from 30 June 2020 to 31 December 2020. This date is aligned with the end date intended by the Bank of England and the Prudential Regulation Authority (PRA).

Our position otherwise remains unchanged. We intend to use this power to ensure that firms and other regulated entities do not generally need to prepare now to meet the changes to their UK regulatory obligations that are connected to Brexit.

We would like to remind firms that there are specific areas where we will not be granting transitional relief[14]. In these areas, we continue to expect firms and other regulated entities to take reasonable steps to comply with the changes to their regulatory obligations by exit day. Firms should use the additional time between now and the end of October to prepare to meet these obligations. If firms are not ready to meet these obligations in full, we will expect to see evidence of why this was not possible.

We will publish more information before exit day on how firms should comply with post-exit rules. We are coordinating our approach with the Bank of England and the PRA.

28 March 2019

In March 2019, under the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019, the Treasury granted us powers to make transitional directions to mitigate disruption caused by EU exit-related changes to firms’ obligations. 

These directions give regulated persons time to adapt to changes to UK financial services regulation caused by Brexit. Continuity is generally achieved by applying a ‘standstill’, so firms may continue to comply with the pre-exit version of an obligation. In addition, temporary permission firms are allowed substituted compliance for home state obligations.

We published the following directions made by the FCA Board on 28 March 2019:

• Transitional Direction[19] (PDF)
• Prudential Transitional Direction[20] (PDF)
• Annex A[21] (PDF) – application of the ‘standstill’ in the Transitional Direction​​​​​​ to amendments made in Statutory Instruments and Exit Instruments amending technical standards
• Annex B[22] (PDF) – application of the ‘standstill’ in the Transitional Direction ​​​​​​to amendments made in the FCA Handbook 

We also published an accompanying explanatory note[23] (PDF) for these directions.

In some cases, firms must comply with post-exit obligations, where we consider it important for our objectives. We set out our approach in our February statement[26].