The Bank of Lithuania prepared and announced important information for financial market upon United Kingdom (UK) leaving the European Union on 29 March 2019. Aiming to ensure the continuous business activity of financial market participants of other European Economic Area (EEA) countries, temporary permissions regime (TPR) will be applied.
According the regulator, the regime will help to ensure that financial market participants of EEA countries operating in the UK (via passporting arrangements or those established in the country) could continue their activities with minimal disruption while they seek full authorisation, and investment funds – authorisation to continue marketing in the UK (TPR will be in place for a maximum of three years).
The following financial market participants have the right to enter TPR:
– Financial brokerage firms operating in the UK via passporting arrangements or branches;
– Management companies operating in the UK via passporting arrangements or branches;
– Electronic money institutions, payment institutions and account information service providers operating in the UK via passporting arrangements or branches/intermediaries;
– Harmonised undertakings for collective investment in transferable securities;
– Managers of hedge collective investment undertakings (including EuVECA, EuSEF, ELTIF and AKIS authorised as MMF). Companies wanting to enter the temporary permissions regime will need to notify the FCA via their Connect system. The deadline for the submission of applications is 28 March 2019, 24:00.
Credit institutions, insurance undertakings and insurance intermediaries licensed in EEA wanting to enter the TPR should contact Bank of England Prudential Regulation Authority.
For more information on TPR, see the website of UK’s Financial Conduct Authority.
More about ECOVIS ProventusLaw experience in working with FinTech companies you can find under https://ecovis.lt/fintech/why-lithuania/.
The information is prepared on the basis of information annouced by the Bank of Lithuania.