The Treasury has written to the Treasury Committee enclosing a draft of secondary legislation that would give temporary transitional powers to the UK financial regulators in the event of a no-deal Brexit that would enable firms and the financial markets to function properly while requirements stemming from EU laws are embedded into UK laws.
The powers come with many safeguards and are, of course, confined only to matters within the remit of FSMA regulators. They would allow them to make directions and take other action to ensure that firms have the time they need to make necessary adjustments to systems and procedures following a hard Brexit. The covering letter says that full transition must be achieved within 2 years of Brexit in any event.
The regulators expect to consult on their plans by the end of February.