Photo via the Financial Times
The markets watchdog of the United Kingdom has requested financial companies from the European Union to complete a 15-minute survey to assist it to deal with what could likely be thousands of requests to continue serving customers in the United Kingdom after Brexit.
The said survey is conducted by the Financial Conduct Authority (FCA). It is for businesses that offer their financial services under the “passporting” rules of the European Union to customers in the United Kingdom from a base that is located in some other member state.
Passporting is set to end when Britain withdraw from the bloc in March of next year and the government of the United Kingdom has said that if necessary, it will legislate to provide a temporary “permissions” scheme so that cross-border business will be able to continue for a period of time even after the Brexit in March 2019.
The results of the said survey will help to set up the permissions scheme since the watchdog will not have ample time to process the full licence applications prior to Brexit. The United Kingdom and the European Union hopes to agree on a transition deal later this March, which would likely ease the pressure until the end of 2020.
On its website, the FCA said: “We anticipate this notification will be a relatively simple process and that a system to enable firms and funds to do this will be set up ahead of exit day.
“Notification will not require the submission of an application for authorisation in the UK prior to exit day. We will set out further details on these proposals and how the scheme will operate in due course.”
The survey questions cover contact information, EU laws under which companies are passporting into the United Kingdom, and the intentions of the firms regarding access to the financial market of Britain after Brexit.