UK – BREXIT FCA updates on Onshoring and the Temporary Transitional Power

02/05/2022

On 31 March 2022, the Financial Conduct Authority (FCA) updated on Onshoring and the Temporary Transitional Power.

To give firms time to adapt to their new requirements and avoid disruption, the Treasury gave UK financial regulators the power to make transitional provisions to financial services legislation for a temporary period. This was known as the TTP. Firms should have used the duration of the TTP to prepare for full compliance with changes to UK regulatory obligations.

FCA’s use of the TTP has ended and firms must fully comply with UK onshored regulatory obligations. The TTP as laid out in Treasury legislation expires on 31 December 2022. However, in line with agreed timescales, the FCA stopped using the power on 31 March 2022, except in relation to the Share Trading Obligation (STO) and the Derivative Trading Obligation (DTO).

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