Nearly 1,500 EU-based financial services companies applied to operate in the UK under its Temporary Permissions Regime (TPR), and will be the last firms taking advantage of the mechanism. The regime allows EEA (European Economic Area) firms passporting into the UK to continue temporarily operating in the country. Due to the volume of TPRs, consultancy firm Bovill concludes that the UK will retain its place as Europe’s financial capital.
Bovill received the data via a Freedom of Information (FOI) request at the end of December 2020. Approximately 1,476 firms applied for TPRs, and are currently awaiting FCA authorisation to operate. This figure is up from 1,441 the previous year.
The countries leading requests were Ireland, France, and Germany, in total accounting for over one third of requests. Regarding sectors, over 400 insurance and insurance intermediaries applied and more than 100 retail and wholesale banks.
Mike Johnson, managing consultant at Bovill, remarked that the “numbers are a good indication that the UK financial services sector will continue to be in a strong position post-Brexit.” Additionally, he said:
“These numbers also indicate the importance of reaching a decision on financial services equivalence between the EU and UK. Recently, Amsterdam overtook London as Europe’s largest share trading centre because Brussels has not recognised UK exchanges and trading venues as having the same supervisory status as its own. However, the numbers from the FCA suggest that financial services firms across Europe recognise London’s potency as a global financial centre and want to be able to conduct business here. Regulatory equivalence decisions would therefore benefit businesses on both sides of the channel.”