The Financial Conduct Authority (FCA) will extend its use of the temporary transitional power, reflecting the extension of Article 50.
The temporary transitional power is intended to minimise disruption for firms and other regulated entities should the UK leave the European Union without a withdrawal agreement. Terms of the power state that firms do not generally need to prepare now to meet the changes to their UK regulatory obligations that are connected to Brexit.
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Nausicaa Delfas, executive director of international at the FCA, said the temporary transitional power is a key part of the regulatory body’s contingency planning if the UK leaves the EU without an agreement. “This extension should give firms and other regulated persons the time they need to phase in any regulatory changes they may need to make as a result of “onshored” EU legislation. The power will provide certainty, ensure continuity and reduce the risk of disruption.
“As we said in February, there are some areas where it would not be appropriate to phase in the changes. For example, reporting rules under MiFID II as receiving these reports is crucial to our ability to ensure market oversight and the integrity of financial markets.
“In these few areas only, we still expect firms and other regulated entities to take reasonable steps to comply with the changes to their regulatory obligations by exit day.”
Earlier this week, the FCA launched a consultation on the proposed guidance for firms on the fair treatment of vulnerable customers.The guidance establishes FCA’s principles regarding firms dealing with vulnerable customers to ensure they are treated fairly across the financial services sector.
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By GlobalDataThe FCA said it wants vulnerable customer care to be embedded within each firm’s culture. Businesses that fall under FCA authority will need to understand what the guidance means for their business and customers, and how they are addressing the needs of vulnerable customers.
Christopher Woolard, executive director of strategy and competition at the FCA, said protecting vulnerable consumers is a key priority for the FCA. “We want to see firms explicitly embedding the fair treatment of vulnerable consumers into their culture. Where we find that firms are not doing enough to ensure that consumers are treated fairly, we will take action.
