Compliance

Compliance Corner: FCA, European Firms

Editorial Staff, 19 January 2022

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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.”

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