Following the UK’s exit from the EU on 31 January 2020, the UK entered into a transition period which was agreed as part of the Withdrawal Agreement between the UK and EU.  During the transition period, which is due to end on 31 December 2020, EU law continues to apply to the UK.

When the transition period ends, EEA firm’s currently passporting into the UK via service or establishment will no longer be able to operate in that way, unless they make a notification to the FCA to be included in the Temporary Permissions Regime (TPR).

What is the TPR?

The TPR will enable insurance firms which passport into the UK, to continue operating in the UK when the passporting regime falls away on 31^st December 2020.

If you are an inbound EEA firm, the TPR will allow you continue operating within the scope of your current permissions for 2-3 years, whilst you are provided with a “landing slot” by the FCA and go through the approval process to become fully authorised.

This applies equally to UK firms with EU business who wish to continue to transact and place that business in London wishing to “reverse branch”

The Window is Closing

Notifications to be included in the TPR need to be submitted to the FCA, via Connect by 30^th December 2020.

After that date EEA firms wishing to undertake business in the UK will no longer be able to apply to be included in the regime, meaning that in order to carry out insurance business in the UK, firms will first need to become fully authorised and approved by the FCA. If they do not and continue trading in the UK they will be doing so illegally. The process of becoming a fully authorised firm  can take between 6-12 months, so it is imperative that if  an EEA firms currently passports into the UK and want to continue to have access to the London and Lloyd’s market, that they make a TPR notification to the FCA.

A common Brexit solution we have seen in the market is Insurance brokers “reverse branching” into the UK from a subsidiary based in the EU, in order for them to continue to be able to service their EEA business post Brexit. It is important that the UK Branch of the EU subsidiary has made the required notification to be included in the TPR, or firms could find that their Brexit solution has fallen at the last hurdle.

ICSR can help firms with the initial TPR notification, although this is a fairly straight forward and relatively simple application. We can also help firms, once they have been provided with a landing slot from the FCA, prepare their applications to become fully authorised firms. These applications take longer and are more complex.

If you would like discuss any aspect of your firm’s Brexit solution, please contact us.

Craig Umbleja

Senior Consultant
Implement Compliance Solutions & Resources