The FCA has said it will take a "tough, assertive approach" to firms operating in the UK once their temporary permissions expire.
Ahead of Brexit, the FCA set up a temporary permissions regime to allow firms to continue to trade in the UK during the transition period. The FCA report that some 1500 firms in Europe that were previously passporting into the UK when the transition period ended, have been allowed to continue operating temporarily in the UK. Whilst trading under temporary permissions, firms could seek full authorisation from the FCA to continue to access the UK market going forward.
In March, the FCA began reaching out to firms using the regime to confirm their ‘landing slot’ — the opening and closing dates — for them to either make their case to become permanently regulated in the UK or stop operating in the region by ditching their temporary powers.
Speaking at the regulator's annual public meeting on 28 September, the FCA said they would be "taking a tough, assertive approach to those firms that want to continue to operate in the UK continue to meet our standards. For firms that don’t meet UK standards or no longer wish to continue to be UK regulated, we will be taking steps to remove their permissions,"