On 30 April 2020, the Bank of England (BoE) and the PRA issued a joint statement relating to HM Treasury’s intention to ‘shift’ the temporary transitional power (TTP) so it will be available for up to two years after the end of the transition period. The BoE and the PRA intend to use the TTP after the transition period as previously communicated in relation to exit day. The BoE and the PRA intend to grant general transitional relief on a broad basis, with key exceptions as previously identified, for a period of 15 months after the end of the transition period (i.e. ending on Thursday 31 March 2022). Specific uses of the TTP, in particular those relating to some of the new requirements on firms entering the temporary permission regime, are expected to remain as previously published.

On the same date the FCA updated its web page on the TTP directions and Brexit Policy Statement (PS19/5). Like the BoE and the PRA, the FCA confirms that after the transition period it intends to apply the TTP on a broad basis and to the same areas previously communicated. The FCA intends to grant transitional relief from the end of the transition period until 31 March 2022.

The FCA states that there are specific areas where it will not grant transitional relief. In these areas, it will continue to expect firms and other regulated entities to take reasonable steps to comply with the changes to their regulatory obligations by the end of the transition period. The detail of how and to what the TTP applies will be set out in the annexes to the TTP directions. The FCA will publish updated draft directions and annexes in due course, which will include details on the application of the TTP in relation to new EU legislative requirements that become applicable during the transition period