<p>On Wednesday, the UK’s <a href=”https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/” target=”_blank” id=”4c85a54d-15e0-4e44-a214-8c55f71cb286_1″ class=”terms__main-term” rel=”follow”>Financial Conduct Authority (FCA</a>) announced the cancellation of the Temporary Permissions Regime (TPR) granted to Paris-headquartered Lyonnaise de Banque. It was the first time the British regulator revoked the TPR of a firm “for missing its landing slot and failing to apply for authorization in a timely manner.”</p><p>Earlier, the FCA kicked out several other firms operating under this temporary regime for violations of regulations. At the start of this year, the regulator <a href=”https://www.financemagnates.com/forex/regulation/fca-suspends-four-european-firms-from-operating-under-tpr/” target=”_blank” rel=”follow”>suspended four Cypriot firms under the TPR</a> and revoked the permissions of at least two CFDs broker operators, <a href=”https://www.financemagnates.com/forex/brokers/fca-orders-everfx-to-stop-offering-cfds-to-uk-customers/” target=”_blank” rel=”follow”>EverFX</a> and <a href=”https://www.financemagnates.com/forex/brokers/fca-stops-uk-operation-of-cfds-broker-finteractive-limited-fxvc/” target=”_blank” rel=”follow”>Finteractive Limited (FXVC)</a>, last year.</p><p>FCA Pushes for Temporary but Essential Program with TPR</p><p>The FCA introduced the TPR after confirming the United Kingdom’s exit from the European Union. Within the member countries of the European Union, financial services companies can passport their licenses, meaning a licensed firm in any country can operate in any other member state without the authorization of the local regulator. However, this regime changed for the UK after <a href=”https://www.financemagnates.com/terms/b/brexit/” target=”_blank” id=”0d53a9a8-2500-4d0e-a2bd-41c7ceaf31d1_1″ class=”terms__secondary-term”>Brexit</a>.</p><p>The TPR aims to allow the EU financial services companies to operate in the United Kingdom until they <a href=”https://www.financemagnates.com/institutional-forex/regulation/fca-extends-window-for-applying-to-temporary-permissions-regime/” target=”_blank” rel=”follow”>receive an FCA authorization</a> for continuing their British operations. However, there are many restrictions, and companies willing to obtain an FCA license can only operate under the program.</p><p>Check out the FMLS21 session on “The City’s Post-Brexit Future as a Financial Hub.” </p><p>European Bloc Supporting TPR Program</p><p>In parallel to the UK, the EU member states also started TPR programs to allow UK-registered companies to operate in the 27-country bloc with almost similar conditions and restrictions. Last year, the Cypriot regulator revealed that it had <a href=”https://www.financemagnates.com/forex/regulation/cysec-admits-88-uk-firms-under-temporary-permissions-regime/” target=”_blank” rel=”follow”>onboarded 88 UK-based firms under its TPR program</a>.</p><p>“At the start of the year, we stated our expectations of firms in the TPR and that if they miss their landing slots, or do not apply by 31 December 2022, we expect them to voluntarily cancel their temporary permissions,” the FCA stated.</p><p>“If this does not happen, then we would take swift action to cancel permissions as 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.”</p>
This article was written by Arnab Shome at www.financemagnates.com.
