FCA publishes direction on recognised overseas investment exchanges

The Treasury is not planning to include EEA market operators in the proposed arrangements enabling incoming firms and businesses to continue to operate immediately after Brexit.

Accordingly if EEA market operators are no longer able to rely on MiFID II passporting rights (eg because a transitional deal is not agreed), they may need to have made an application to the FCA to become a recognised overseas investment exchange (ROIE) to enable the continuing participation of the exchange in UK markets.

The FCA has therefore published a direction that clarifies the FCA’s expectations of EEA market operators, and sets out the way in which such an application may be made. The FCA encourages market operators to contact it as soon as possible regarding their plans, noting that applications should be made no later than 6 months before the ROIE order is required to take effect.


Roseyna Jahangir