The British financial market regulator announced on Tuesday that it has canceled the temporary permissions of four European financial services firms that were operating under the temporary permissions regime (TPR) following Brexit .
Two of these companies, Evest Limited and Arumpro Capital Limited, are based in Cyprus where Esfera Capital is a Spanish company and INZMO Europe a German firm.
The Financial Conduct Authority (FCA ) clarified that any European firm operating within Britain under TPR needs to follow local regulatory standards to continue its operations in the country.
“The UK is open for business, but not to firms who do not meet our regulatory expectations,” said Emily Shepperd, the Executive Director of Authorisations at the FCA.
“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.”
Temporary Permission
The UK regulator introduced the TPR after the closure of the Brexit, allowing companies operated by passporting their European licenses and now seeking full UK authorization to operate with temporary permission. In addition, European regulators are offering similar programs to UK companies.
The cancellation of the permission of the four companies came after the regulator made multiple requests but did not receive some mandatory information requests.
“[The companies have] failed to respond to repeated requests for the provision of information, namely the information set out in the TPR Attestation Survey. Authorized firms (and those seeking authorization) are expected to engage with the Authority in an open and cooperative way,” the FCA notice stated.
“The Authority has concluded, on the basis of the facts and matters set out below, that [the companies are] failing to satisfy the suitability and effective supervision Threshold Conditions. In particular, the Authority is not satisfied that [they are] fit and proper having regard to all the circumstances or that it can be effectively supervised.”
