FCA warns firms to take ‘reasonable steps’ for post-Brexit reg reporting
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FCA warns firms to take ‘reasonable steps’ for post-Brexit reg reporting 14 October 2019London Reporter: Jenna Lomax
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Firms should take reasonable steps to be prepared to comply with post-Brexit second Markets in Financial Instruments Directive (MiFID II) transaction reporting and European Market Infrastructure Regulation (EMIR) trade reporting requirements, according to the Financial Conduct Authority (FCA).
The authority said it is aware that leaving the EU during the working week could pose operational challenges for firms and it will take a proportionate and pragmatic approach to supervise reporting around exit day.
On MiFID II transaction reporting, the FCA warned firms that are not able to comply fully with the regime at the time of the UK’s withdrawal from the EU will need to be able to back-report missing, incomplete or inaccurate transactions.
On EMIR reporting, FCA-registered trade repositories should be ready to receive reports from UK reporting counterparties and be in a position to share these with UK authorities.
FCA-registered trade repositories must ensure the migration of outstanding trades and historic EMIR data, and that the details of any trades newly concluded, terminated or modified by the UK reporting counterparties on 1, 2, and 3 November 2019, are embedded in their systems, available for UK authorities by 4 November 2019.
The FCA also indicated that if the UK leaves the EU without a deal, passporting will end.
It said: “Any Economic European Area passporting firm wishing to continue operating in the UK will need to notify the FCA by 30 October that they wish to enter the Temporary Permissions Regime.”
Fund managers have until 16 October 2019 to inform the FCA if they want to make changes to their existing notification.
Nausicaa Delfas, executive director for international at the FCA, said: “The FCA has been preparing to ensure UK financial services are well placed if the UK leaves without a deal. We have set out steps certain firms need to take–it is important that firms are as prepared as possible if there is a no-deal exit, and that they are aware of what they need to do.”
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