The temporary permissions regimes (TPR) were designed to allow relevant European Economic Area (EEA) firms and investment funds who were previously using the passporting regime to transition to the UK full regulatory regime following the UK’s departure from the EU.
Contractual run-off (CRO) ends on 31 December 2025 for the following firms, regardless of when the firm entered the regime:
- EEA authorised payment institutions.
- EEA registered account information service providers.
- EEA authorised electronic money institutions that previously passported into the UK without a UK branch or UK-based agent.
Other EEA-based firms using CRO to perform contracts (other than insurance contracts) entered before they entered the regime should also note the 5-year time limit to CRO.
Firms should tell us when they stop using CRO[1].
About the previous passporting regime
Before the end of the UK’s Brexit transition period, EEA financial services firms established in any EEA member state could use the passporting regime to establish a branch or provide services (without a UK branch) in the UK without being authorised by the PRA or the FCA. The passporting regime also allowed EEA-based investment funds to be marketed in the UK.
However, following the end of the transition period, EEA-based firms can no longer passport into the UK and EEA-based investment funds can no longer be marketed under a passport in the UK.
The TPR and TMPR
As part of the UK’s preparations for Brexit, the UK Government established the TPR for firms based in the EEA that passported into the UK, and the TMPR for EEA-based investment funds that were marketed via a passport in the UK.
The TPR has now ended but it allowed EEA-based firms that were passporting into the UK at the end of the transition period (31 December 2020) to continue operating in the UK within the scope of their previous passport permission for a 3-year period (to 31 December 2023). This was subject to having notified us that they wanted to use the TPR before the end of the transition period.
During this 3-year period, firms were expected to seek full authorisation by the PRA or the FCA in the UK, if required, to continue to access the UK market.
The TMPR is still in operation and allows certain EEA-based investment funds that were being marketed in the UK via a passport at the end of the transition period to continue to be marketed in the UK in the same manner as they were before the transition period ended (again, subject to having notified us before the end of the transition period) pending recognition under the Overseas Funds Regime.
The FSCR
Along with the TPR and TMPR, the UK Government also established the financial services contracts regime (FSCR). The FSCR allows EEA firms that previously passported into the UK and that did not enter the TPR, or that left the TPR without being authorised or registered in the UK, to wind down their UK business in an orderly fashion.
Firms in the FSCR are not able to write new UK business and are limited to the regulated activities (or providing services) involved with pre-existing contracts, plus certain limited specified activities.
The FSCR provides 2 discrete mechanisms:
- supervised run-off (SRO)
- contractual run-off (CRO)
The FSCR is time-limited depending on the type of regulated activity being performed (or the services being provided) and applies for:
- a maximum of 15 years for insurance contracts, or
- a maximum of 5 years for all other contracts
These are maximum periods. We expect firms in the FSCR to run down their UK business promptly.
For EEA authorised payment institutions, EEA registered account information service providers and EEA authorised electronic money institutions that previously passported into the UK without a UK branch or UK-based agent, CRO will end on 31 December 2025 regardless of when the firm entered the regime.
In this section
There are other pages in this section about:
- which firms and investment funds were eligible to notify us to use the TPR[2]
- rules that apply to firms in SRO and fund operators in the TMPR[3]
- how we will supervise firms in SRO[4]
- SRO fees and levies[5]
- adding a new sub-fund to an umbrella scheme in the TMPR[6]
- landing slots for funds in temporary marketing permissions regime
- leaving SRO or CRO[1]
- the financial services contracts regime[7]
- TPR data: solo-regulated firms[8]
Gibraltar-based firms
Gibraltar-based firms can continue to passport into the UK and operate as they did before the end of the transition period and did not need to use the TPR. Find out more about passporting in and out of Gibraltar.
Contact us
If you have questions or need help, please contact us.
31/01/2020: Information changed Updated with the latest information
