The City watchdog has today threatened to chuck European finance firms out of London if they do not intend to stay in the capital for the long haul in a bid to take back control of the Square MIle after Brexit.
The Financial Conduct Authority (FCA) issued a stark warning to EU banks, brokers and fund managers that use a reprieve scheme but do not intend to stay in the UK in the long-term.
The City watchdog said it would clamp down on EU finance firms that are abusing the temporary permissions regime (TPR), a scheme launched by the FCA to help smooth the post-Brexit transition period for European firms based in the City.
“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,” the FCA said.
Firms will be told to stop undertaking new business or could be struck off from the TPR if they have “no intention in applying for full authorisation, or if their authorisation application is refused,” the finance watchdog warned.
Emily Shepperd, executive director of authorisations at the FCA, said: “We will continue to act against firms that fail to meet our standards.”
“We expect firms operating under the regime to be responsive to our requests for information, and that are coherent in their business planning,” she added.