The FCA Will Take Pragmatic Approach to Supervising Reporting on Brexit Day

Uncertainty in business is still a huge topic as the UK prepares to leave the EU on the 31st October and the Financial Conduct Authority or FCA has published an ‘expectations for firms on Brexit’ article to ease some organisational worries.

The FCA is aware that leaving the EU on a working week may pose some additional challenges and suggests that firms should take reasonable steps to stay compliant with MiFID and EMIR trade reporting requirements post-exit.

If the UK leaves the EU without a deal, it should be noted that passporting will end. EEA passporting firms wishing to continue operating in the UK will need to notify the FCA by 30th October for a temporary permissions regime (TPR). It will be generally expected that these firms have a physical presence in the UK to help ensure effective supervision.

On MiFID trade reporting, trade repositories registered with the FCA should be ready to receive and share reports with the UK authorities. Trade repositories will also be responsible for migrating historical trades and EMIR data as well as ensuring any newly concluded, modified or terminated trades by UK counterparties made on 1st, 2nd and 3rd November 2019 are embedded in their systems. These should be ready to pass over to UK authorities by 4th November 2019.

Finally, any UK reporting counterparties should ensure that details of derivative transactions made, modified or terminated on 30th and 31st October that also cannot be reported before Brexit takes places should be reported to an FCA registered trade repository before 4th November 2019.

If you need help, the FCA has some Brexit pages and an phone helpline: 0800 048 4255.

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If you haven’t got a Legal Entity Identifier to comply with trade reporting requirements yet, you can get one here.