On 25 July 2019, the FCA confirmed that it intends to extend the proposed duration of the directions issued under the temporary transitional power to the 31 December 2020. This is to reflect the extension of Article 50. Other than the additional time the FCA’s approach remains unchanged.

As the FCA announced in February 2019, there are specific areas where it will not be granting transitional relief and, in these areas, it continues to expect firms and other regulated entities to take reasonable steps to comply with the changes to their regulatory obligations by exit day.

The following firms or persons should continue their preparations to comply with the changes:

  • Firms subject to the MiFID II transaction reporting regime, and connected persons (for example approved reporting mechanisms);
  • Firms subject to reporting obligations under the European Market Infrastructure Regulation;
  • EEA Issuers that have securities traded or admitted to trading on UK markets;
  • Investment firms subject to the Bank Recovery and Resolution Directive and that have liabilities governed by the law of an EEA State;
  • EEA firms intending to use the market-making exemption under the Short Selling Regulation;
  • Firms intending to use credit ratings issued or endorsed by FCA-registered credit ratings agencies after exit day; and
  • UK originators, sponsors, or securitisation special purpose entities of securitisations they wish to be considered simple, transparent, and standardised under the Securitisation Regulation.