FCA has set out how it proposes to use its temporary powers under the draft legislation Treasury has put forward. It plans in principle to make transitional measures that will ensure that firms do not need to prepare now to make Brexit-related changes to their business. Wherever possible, these transitional arrangements would apply. But in some areas it would not be consistent to do so, and FCA has now set out what those areas are. In these areas firms will need to start their preparations, They are:
- MiFID transaction reporting;
- EMIR reporting;
- EEA issuers trading on UK markets;
- firms subject to the BRRD with liabilities governed by the laws of an EEA State;
- EEA firms wanting to use the market-making exemption under the Short Selling Regulation;
- firms intending to use credit tradings issued or endorsed by FCA-registered CRAs after Brext; and
- UK originators, sponsors or securitisation SPVs in respect of Securitisation Regulation simple, transparent and standardised securitisations.
Also of course the TPR will apply from exit day.