FCA Cancels EU Firms’ Permissions

January 20, 2022
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The Financial Conduct Authority (FCA) has cancelled temporary permissions of four European firms and warned that EU firms must meet the FCA’s standards to be allowed to operate in the UK.

The Financial Conduct Authority (FCA) has cancelled temporary permissions of four European firms and warned that EU firms must meet the FCA’s standards to be allowed to operate in the UK.

The FCA cancelled permissions of Arumpro Capital, Esfera Capital, Evest and INZMO, after the firms repeatedly failed to respond to mandatory information requests sent by the regulator.

These four European firms offered financial services in the UK under the FCA’s temporary permissions regime. The regime enables EU companies to continue operating temporarily in the UK via a passport following Brexit, while they seek full authorisation.

Nonetheless, the FCA may revoke the permissions if companies 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.

In its decisions to revoke the permissions, the FCA said the firms “failed to be open and co-operative in all [their] dealings with the authority”.

Therefore, the FCA is not satisfied that they could conduct business “in a sound and prudent manner” or that they are “ready, willing and organised to comply with the requirements and standards under the regulatory system”.

The FCA warns “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 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,” said Emily Shepperd, executive director of authorisations at the FCA.

As a result of the withdrawal of temporary permissions, Arumpro, Esfera, Evest and INZMO can no longer conduct regulated business in the UK and will be committing a criminal offence if they do so.

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