LSE reminds EEA-domiciled ETFs of actions required before end of Brexit transition period
London Stock Exchange today issued a notice to EEA ETF issuers regarding actions that have to be taken before the end of the Brexit transition period.
EEA ETF issuers with securities admitted to trading on LSE markets will need to notify the Financial Conduct Authority (FCA) by the end of 30 December 2020 that they wish to use the temporary permissions regime (TPR). EEA ETF issuers that do not notify FCA of their intention to use the TPR will cease being able to operate in the UK, unless they have obtained full authorisation from FCA and trading of those securities will be suspended by the LSE.
The TPR is designed to help firms and investment funds continue their UK business with minimal disruption when the passporting regime ends at the end of the transition period.
The TPR will allow inbound firms to continue operating in the UK within the scope of their current permissions for a limited period after the end of the transition period, while they seek full UK authorisation, if required. The TPR covers both the firm’s pre-existing business and any new business entered into during the TPR.
Currently, financial services firms in any European Economic Area (EEA) member state can use the passporting regime to establish a presence or carry out permitted activities in any other member state. Investment funds can be marketed across the EEA under similar passporting provisions.
During the transition period, EU law remains applicable in the UK in accordance with the EU-UK Withdrawal Agreement. This means that firms must continue with implementation plans for EU legislation that is still to come into effect before the end of December 2020.
Further details of the TPR are available on the link to the FCA website.
EEA ETF issuers should contact ETFDeskLondon@lseg.com