The City’s financial regulator said four firms based within EU nations have already been told to pack their bags after failing to meet certain standards. It insisted that others would follow in their footsteps if they did not properly demonstrate a desire to stay.
European finance firms believed to be abusing the temporary permissions regime (TPR) will be thrown out of the City.
The TPR allows those who were operating in the UK when the Brexit transition period ended to continue operating until full authorisation is granted.
Regulatory body the Financial Conduct Authority (FCA) said only firms which want to “operate in the UK in the long term and meet the standards to do so” will be allowed to stay.
This, according to City AM, is part of a bid to “take back control of the Square Mile” after Brexit.
There are many ways a firm can fail to comply with the FCA’s standards.
The body said: “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.”
Once a firm has had its permission cancelled, it can no longer conduct regulated business either in the City or in the UK more generally.
Firms that continue to engage in business “will be committing a criminal offence”, the FCA added.
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But she added that firms failing to meet the watchdog’s “regulatory expectations” will not be tolerated.
Ms Shepperd said: “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.”
Most high-net-worth individuals in the UK believe London will continue to be the financial capital of Europe over the next decade, according to a survey conducted late last year.
Eighty percent of the 1,000 people with investable assets of over £250,000 added that they were confident about the future of the country’s economy more broadly, while an impressive 33 percent said they felt “very confident”.
This result came in spite of countless warnings of economic ruination if – as they did – Britons voted to pull their country out of the EU.