In October 2018, the FCA published its first consultation paper on the amendments it needs to make should the UK leave the EU without an implementation period (our blog is here). On 23 November 2018, the FCA published its second consultation, Consultation Paper 18/36: Brexit: Proposed changes to the Handbook and Binding Technical Standards – second consultation (CP18/36).
The structure of CP18/36 is as follows:
- Chapter 2 discusses a range of cross-cutting issues which span the FCA’s Handbook and binding technical standards (BTS) and its proposed approach to these. This includes further issues identified since the publication of its first consultation paper;
- Chapter 3 explains the Handbook proposals covered in CP18/36 (except those related to the introduction of the temporary permissions regime (TPR) and the new credit rating and trade repository regimes). This includes an explanation of the more significant changes the FCA is proposing. A table summarising the contents of chapter 3 can be found in table 1 on page 5 of CP18/36;
- Chapter 4 sets out certain proposals about the TPR which were previously described but not consulted on in the FCA’s first Brexit consultation paper;
- Chapter 5 outlines the changes the FCA proposes to make to BTS. An explanation of the FCA’s approach to BTS was included in its first Brexit consultation paper;
- Chapter 6 summarises the FCA’s approach to forms and the guidance the regulator proposes to issue. The FCA states that at this stage it proposes not to carry out a detailed line by line review of all forms but will instead produce a guide which sets out the approach it expects users to take after Brexit;
- Chapter 7 outlines changes due to the FCA taking on regulating credit rating agencies and trade repositories; and
- Chapter 8 summarises the FCA’s proposed approach to non-Handbook guidance issued by it and the guidance it proposes to issue on this.
Table 2 in paragraph 3.5 of CP18/36 includes a list of stakeholder groups who might have an interest in the specific sections of the consultation paper.
The deadline for comments on CP18/36 is 21 December 2018.
A client briefing note on CP18/36 will be published in due course.