FCA publishes considerations for UK firms after the Brexit implementation period

The FCA has updated a webpage setting out areas for UK firms (in particular those who do business in the EEA) to consider in their planning for the end of the implementation period (which is due to operate until 31 December 2020).

The update includes:

• A set of questions to help firms determine whether they conduct business in the EEA and so whether your business might be affected at the end of the implementation period.  If so, firms will need to understand on what legal basis that business occurs and therefore whether it can continue on that basis in 2021 or whether action needs to be taken.
• Guidance on the servicing of EEA customers after the end of the implementation period. If firms are servicing customers based in the EEA, they will need to take steps to continue to service them, following local law and local regulators’ expectations. The FCA is clear that firms’ decisions need to be guided by TCF and what is the right outcome for customers. The FCA’s view is that in many cases, it would be a poor outcome for the consumer for firms to simply stop servicing them and in some situations significant consumer harm would result if firms stopped servicing the consumer (for example if this meant withholding payments to which customers are entitled).
• A reminder that firms should have a clear understanding of their dependency on EEA outsourcing or third-party service providers so you can assess whether they will be able to continue providing their services after the implementation period.
• A prompt that banks and payment service providers should take steps now to ensure they are ready to provide the name and address of the payer when making intra-EEA payments.
• A reminder that firms should deal with European regulators which they may need to deal with in the same way as they deal with the FCA, including responding as best the firm can and in a timely manner.

This article was written by Anna Davis.