UK FCA No Deal Brexit Preparations

On Oct. 7, UK FCA issued market watch issue 61 on no-deal Brexit.

  • Followed Mar. 2019, FCA supervisory statement on regime post-Brexit, see #52800.
  • Follows UK FCA Aug. 2019 market watch 60 on inside information, AML, see #63603.
  • No-Deal Brexit
  • Important information to help firms prepare for a possible no deal Brexit on Oct. 31.
  • FCA website is being updated and in Sep. 2019 CEO spoke on no deal, see #64997.
  • He highlighted outstanding issues which require further action from the UK or the EU.
  • Including prospect of overlapping EU and UK share trading obligations for MiFID firms.
  • Emphasized firms should consider these issues as part of their contingency planning.
  • MiFID Transaction Reporting
  • Temporary transitional power is intended to minimize disruption if there is no-deal.
  • Follows FCA Jul. 2019 extension of the temporary transitional power, see #63101.
  • But this is not appropriate regarding the transaction reporting rules under MiFID II.
  • Such reports are crucial for FCA market oversight and integrity of financial markets.
  • Firms and connected persons, e.g. approved reporting mechanisms, should take reasonable steps to comply with changes to their regulatory obligations by exit day.
  • Following UK FCA Sep. 2019 issued draft directions under Brexit TTP, see #65489.
  • Firms unable to comply fully with regime at time of a no-deal withdrawal must be able to back-report missing, incomplete, inaccurate transaction reports as soon as possible.
  • MiFID Transparency Regime
  • Update on how MiFID transparency regime will work in the event of no deal, covering FITRS, DVC, equity, non-equity transparency, systematic internalizers, tick sizes.
  • Takes account of ESMA statement issued Oct. 7, 2019, giving details on operation of ESMA databases and performance of MiFID II calculations in case of no-deal.
  • Industry Testing- FCA FITRS
  • As part of the development of the post-exit MiFID regime, industry testing for FCA FITRS (Financial Instruments Transparency System) will open on Oct. 10, 2019.
  • Oct. 2019 EU ESMA Update
  • On Oct. 7, 2019, ESMA issued updated measures on no-deal Brexit, see #65961.

Regulators UK FCA
Entity Types B/D; Bank; BS; CNSM; Corp; Exch; Fiduciary; HF; IA; Ins; Inv Co; MSB; OTC
Reference MW 61, PR, 10/7/2019; EUWA; MIFID/MIFIR Dir 2014/65, Reg 600/2014; Brexit
Functions BCS; Compliance; Financial; Legal; Operations; Privacy; Risk; Trade Reporting; Trading; Treasury
Countries European Union; United Kingdom; Cross-Border
Products Banking; Clearing; Corporate; CRA; Derivatives; Fund Mgt; Hedge Funds; Insurance; Mutual Funds; Securities; Structured Products
Regions EMEA
Rule Type Guidance
Rule Date 10/7/2019
Effective Date 10/7/2019
Rule Id 65940
Linked to Rule :65961
Reg. Last Update 10/7/2019
Report Section UK

Last substantive update on 10/08/2019