European financial firms will be expected to pass a “rigorous review” if they are to operate in the UK, the Financial Conduct Authority’s boss said in a speech today.
Nikhil Rathi told a City audience that since the end of the transition period, the regulator has taken action against 13 firms who are currently operating under the post-Brexit Temporary Permissions Regime (TPR).
Rathi said the FCA was in the process of removing a further 120 firms from operating in the UK.
The TPR allows European Economic Area firms who were operating into the UK via a ‘passport’ arrangement at the end of the Brexit transition period to continue operating here under their original agreement, as long as they meet what Rathi called “high standards.”
Rathi confirmed that “as we move to a more permanent arrangement, there will be a rigorous review of all firms seeking to enter the UK authorisation gateway.”
The watchdog boss also suggested cryptoasset firms were on his radar.
He revealed that the FCA has identified some 111 firms operating in the UK without registration, and said a “significant number are not meeting the required standards under money laundering regulations.”
The body has been vocal about the marketing of financial products on social media recently, including crypto firms.
Rathi did reiterate, though, that the FCA wants to encourage firms looking to “grow and scale successfully” within the UK.