GEN TP 5 Transitional provisions applying across the FCA Handbook and Technical Standards relating to the UK’s exit from the EU

1(1)

The purpose of these transitional provisions is to assist a smooth transition on IP completion day2. They comprise various technical provisions that will apply across the whole FCA Handbook and Technical Standards to achieve results that most people would probably expect to apply in any event.

(2)

These transitional provisions consist of general transitional provisions, which apply at a high level of generality, and more specific transitional provisions in relation to record keeping and notification rules.

(3)

The more specific transitional provisions relating to record keeping and notification rules override the general transitional provisions. Both the general and the more specific transitional provisions do not apply if the context requires otherwise and are subject to any more specific transitional provision elsewhere in the FCA Handbook, Technical Standards or other legislative material relating to the matter.

(4)

Definitions for these transitional provisions, additional to those in the Glossary, are provided at row 13 of Table 2.

1

Every provision in the FCA Handbook, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Acts under pre-IP completion day provisions

Anything done, or having effect as done, under or for the purposes of any pre-IP completion day2 provision has effect as if done under or for the purposes of any substantially similar provision in the FCA Handbook.

From IP completion day2

IP completion day2

2

Row 1 of this table

G

For example, a firm may continue to treat a client as an elective eligible counterparty pursuant to COBS 3.6.4R where prior to IP completion day2 it had categorised that client as such in deference to the status of that undertaking under the law or measures of the EEA State of that client’s establishment in accordance with COBS 3.6.7R.

From IP completion day2

IP completion day2

3

Every provision in the FCA Handbook, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Series of events

If the application of any provision in the FCA Handbook is dependent on the occurrence of a series of events, some of which occur before, and some of which occur after, IP completion day2, the provision applies with respect to the events that occur after IP completion day.

From IP completion day2

IP completion day2

4

Every provision in the FCA Handbook, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Deemed references to pre-IP completion day provisions Any reference (express or implied) in a provision in the FCA Handbook to a provision of or made under the Act or of retained EU law is to be read (so far as the context permits and according to the context) as being or including, in relation to times, circumstances and purposes before IP completion day2, a reference to any substantially similar pre-IP completion day2 provision.

From IP completion day2

IP completion day2

5

Row 4 of this table

G

For example, BIPRU 2.1.11R requires a firm to notify the FCA immediately of any breach, or expected breach, of the main BIPRU firm Pillar 1 rules (GENPRU 2.1.40R (Variable capital requirement for BIPRU firms), GENPRU 2.1.41R (Base capital resources requirement for BIPRU firms) and GENPRU 2.1.48R (Table: Base capital resources requirement for a BIPRU firm). This includes breaches of the main BIPRU firm Pillar 1 rules as they applied before IP completion day2.

From IP completion day2

IP completion day2

6

Every provision in the FCA Handbook, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Time starting before IP completion day

If, at IP completion day2, time has begun to run for any purpose under any pre-IP completion day2 provision applicable to a firm or other person, then:

(1) time will be regarded as having started to run, for the purposes of any substantially similar provision in the FCA Handbook, when it started to run for that other purpose; and

(2) the firm or other person will be relieved of its obligation to comply with the relevant pre-IP completion day2 provision if and to the extent that it complies with the substantially similar provision as extended by this transitional provision.

From IP completion day2

IP completion day2

7

Every rule in the FCA Handbook requiring a record to be made or retained, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Record keeping

A firm or other person will not contravene a rule in the FCA Handbook requiring a record to be made or retained to the extent that the firm or other person:

(1) made a record of the matter before IP completion day2 in accordance with the rule or with a substantially similar pre-IP completion day2 provision applicable to the firm or other person; and

(2) retains that record as if the rule was in force when the record was made.

From IP completion day2

IP completion day2

8

Every rule in the FCA Handbook requiring a record to be made or retained, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

G

This transitional provision makes specific provision, in relation to record keeping, for the matters covered by row 1 of this table. It is included for clarity and overrides those general transitional provisions.

From IP completion day2

IP completion day2

9

Every rule in the FCA Handbook requiring a record to be made or retained, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

A firm or other person must retain a record in accordance with a rule in the FCA Handbook requiring a record of that sort to be retained, if the firm or other person was required to make and retain that record before IP completion day2 under a substantially similar pre-IP completion day2 provision applicable to the firm or other person.

From IP completion day2

IP completion day2

10

Row 7 of this table

G

This transitional provision makes specific provision, in relation to records, for the matters covered by rows 4 and 6 of this table. It is included for clarity and overrides those general transitional provisions.

From IP completion day2

IP completion day2

11

Every notification rule in the FCA Handbook, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Notification

A firm (or its auditor, appointed actuary or appropriate actuary) or other person will not contravene a notification rule in the FCA Handbook to the extent that notice of the relevant matter was given to the FCA before IP completion day2 in accordance with:

(1) the notification rule; or

(2) a substantially similar pre-IP completion day2 provision applicable to the firm or other person.

From IP completion day2

IP completion day2

12

Row 11 of this table

G

This transitional provision makes specific provision, in relation to notifications, for the matters covered by rows 1 and 3 of this table. It is included for clarity and overrides those general transitional provisions.

From IP completion day2

IP completion day2

13

As rows 1 to 12 of this table

R

Definitions

In these transitional provisions:

(1) “pre-IP completion day2 provision” means a provision in force on the day preceding IP completion day;

(2) “substantially similar” means substantially similar in purpose and effect; and

(3) a reference to a “provision” in the FCA Handbook means every type of provision, including rules, guidance, provisions in codes, and so on.

From IP completion day2

IP completion day2

14

Rows 15 and 16 of this table

G

Application for provisions which are not rules

The purpose of row 15 of this table is to ensure that the transitional provisions in rows 1 to 13 apply throughout the FCA Handbook. The purpose of row 16 is to ensure that the transitional provisions in rows 1 to 13 apply throughout Technical Standards made by the Board of the FCA.

From IP completion day2

IP completion day2

15

Directions, requirements, guidance, evidential provisions and other provisions in the FCA Handbook (that is, provisions with the status letter “D” or “G” or “E” in the margin or heading) unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

G

The provisions in rows 1 to 13 apply to every person to whom the provisions referred to in column (2) apply as if the rules in those rows were part of those provisions.

From IP completion day2

IP completion day2

16

Technical Standards (that is, provisions with the status letter “TS” in the margin or heading) made by the Board of the FCA under The Financial Regulators’ Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

TS

The provisions in rows 1 to 13 of this table apply to every person to whom the provisions referred to in column (2) apply as if references to the Handbook were to Technical Standards made by the Board of the FCA. References in this table and in headings to the FCA Handbook should be read as referring to Technical Standards made by the Board of the FCA, where the context requires.

From IP completion day2

IP completion day2