The Financial Conduct Authority (FCA) has launched a consultation on its approach to the regulation of international firms operating in the UK as it considers its post-Brexit approach.

The consultation will focus on firms that have applied, or intend to apply, for authorisation in the UK as well as those already authorised. This includes those entering the Temporary Permissions Regime.

The deadline for consultation responses is the 27 November 2020.

The FCA said that it expects there to be an increase in the number of international firms seeking authorisation in the UK following Brexit.

There are over 1,500 firms and 600 funds already currently registered in the Temporary Permissions Regime.

International firms service UK customers can create different risks for consumers due to how their businesses are structured and operate. The FCA wants to hear views on how these risks can be mitigated, and when it would be appropriate for an international firm to seek authorisation as a UK-incorporated firm for all or part of its business.

The FCA expects any firm seeking authorisation to have an active base of business in the UK in order to enable the regulator to effectively supervise its UK activities.

Nausicaa Delfas, executive director of international at the FCA, said: “With the Brexit transition period due to end on 31 December 2020, firms that have registered for temporary permission will need to consider plans for full authorisation. Today we are setting out our expectations for the future authorisation and supervision of international firms, to ensure appropriate protection for users of financial services.

“International firms are a key contributor to the success of the UK financial services market. This consultation will give EEA and non-EEA firms a chance to feedback on our future approach to the regulation of international firms.”