GB - FCA considerations for UK firms after the implementation period
On 30 September 2020, the FCA updated its webpage on considerations for UK firms after the implementation period. The FCA details that if firms deposit client money and/or custody assets in any institution in the EEA, or if their safeguarding institution is in the EEA, then they should think about the legal basis on which that business occurs and how that might change at the end of the transition period.
This includes thinking about whether firms will need additional regulatory permissions in the UK and/or in another country. The update also states that such firms are required to carry out periodic due diligence reviews on third parties holding client money and/or custody assets.
Furthermore, if firms deposit client money and/or custody assets with any institution in the EEA, they should review their due diligence to ensure that client assets will not be subject to increased risk due to any changes arising from the end of the transition period, and manage the risks accordingly.
The FCA also states that firms should make sure that existing safeguards and protections for client assets, especially in the event of insolvency, remain effective from the end of the transition period.