Compliance
Compliance Corner: FCA, European Firms

The latest compliance news: regulatory developments, punishments, guidance, permissions and new product and service offerings.
Financial Conduct Authority
The UK’s Financial
Conduct Authority has warned European firms wishing to
continue operating in the UK that they must meet standards to do
so or face criminal sanctions and be closed down.
The watchdog has acted against Arumpro Capital Limited
(registered in Cyprus); INZMO Europe GmbH (Germany); Evest
Limited (Cyprus), and Esfera Capital, Agencia de Valories
(Spain). The FCA has cancelled the firms’ temporary permissions,
stating that they did not reply to mandatory information
requests.
“European firms wishing to remain in the temporary permissions
regime need to meet the FCA’s standards to continue operating in
the UK. The regime was designed to ensure that European firms
operating in the UK via a passport when the Brexit transition
period ended could continue operating temporarily while they seek
full authorisation in the UK,” the FCA said in a statement
yesterday.
“The TPR should only be used by firms who want to operate in the
UK in the long-term and meet the standards to do so. Firms may be
asked to stop undertaking new business or could be removed from
the TPR if they miss their ‘landing slot’, fail to respond to
mandatory information requests, have no intention in applying for
full authorisation, or if their authorisation application is
refused,” it continued.
Emily Shepperd, executive director of authorisations at the FCA,
said: “The UK is open for business, but not to firms who do not
meet our regulatory expectations. We expect firms operating under
the regime to be responsive to our requests for information, and
that are coherent in their business planning. We will continue to
act against firms that fail to meet our standards.”