European firms wishing to remain in the temporary permissions regime (TPR) need to meet the FCA’s standards to continue operating in the UK, the regulator has said.

The TPR 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.

In a statement this morning, the FCA said 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, the regulator said.

The FCA has already cancelled the temporary permissions of 4 firms, who the regulatory said “despite multiple opportunities, did not respond to mandatory information requests.”

Firms that have had their permissions cancelled can no longer conduct regulated business in the UK and will be committing a criminal offence if they do so, warned the FCA.

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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