Jointly with the Bank of England, we have written a letter[1] to CEOs of insurance firms on the importance of being prepared for the end of the transition period, in order to minimise disruption and ensure market stability.
This follows our joint letter with the Bank to CEOs of UK and international banks on 9 October[2].
Other firms may find it useful to consider these letters, and the FPC[3], EIOPA[4], EBA[5] and ESMA[6] statements, to help them prepare for the end of the transition period.
UK authorities have put temporary measures in place to ensure that UK households and businesses will be able to continue accessing services from EU financial institutions after the end of 2020. These measures include the temporary permissions regime (TPR) and the use of the Temporary Transitional Power (TTP)[7].
However, some volatility and disruption to financial services, particularly to EEA-based clients and customers, could arise. UK firms are continuing to make preparations and engage with clients and customers to minimise any disruption and it is important that they continue to do so.
Final steps by individual firms are required to ensure their preparedness for the end of the transition period. Firms should read our Brexit pages including how to prepare for Brexit and the guidance in that section relevant to UK firms and their sector. We will keep this guidance up to date.
We expect firms to address the risks they may face. If firms have any questions about our expectations, they can raise these through their usual supervisory channels – or if they don’t have a named FCA supervisor, they can call our dedicated Brexit telephone line on 0800 048 4255.