EG 19.42 EU Exit Passport Regulations

1Regulations 28 and 34 of the EU Exit Passport Regulations make provision for certain qualifying persons to be treated as having Part 4A permission. The EU Exit Passport Regulations provide a supervised run-off regime, which enables such persons to run off existing UK contracts and conduct an orderly exit from the UK market.

1The FCA has power under the EU Exit Passport Regulations to direct that the regime should not apply to a particular person. The effect of such a direction would be to remove that person’s deemed permission to conduct regulated activities in the UK.

1The FCA may consider whether to make a direction under the EU Exit Passport Regulations where:

1. (1)

   the person is failing or is likely to fail to satisfy the threshold conditions; or

2. (2)

   it is desirable to exercise the power in order to advance one or more of its operational objectives.

1When exercising this power, the FCA will do so in a manner consistent with its approach generally to enforcement and cancellation under the Act.

1The decision making procedures used to exercise the power will be consistent with the FCA’s approach to making decisions under executive procedures.