“Brace for Brexit “ – that is the message from Tánaiste Leo Varadkar as per the reporting in the Irish Times this week.

There is now greater urgency about Brexit it given the approaching expiry of the Transition Period on 31 December 2020 and with little sign or hope of an agreement being reached between the UK and EU. The UK’s Internals Market Bill is making it even more difficult to see an agreement being concluded.

This being the case, businesses need to be confident that their Brexit Preparedness Plans are robust and being implemented on a timely basis. Those trading with the UK need to have customs declarations made or relevant details available to input into the online system – any inaccuracies will cause delays and likely increase costs for the business. Financing arrangements may be required to fund cashflow pressures caused by increased tariffs and currency fluctuations.

In relation to Financial Services businesses who operate in the UK on foot of an Irish or other EU authorisation, they should be aware of the UKs temporary permission regime and temporary marketing permission regime, (together TPR) whereby EU authorised firms and funds can passport in to the UK and continue to operate in the UK on existing passported permission for a limited time after the Transition Perion expires.

To avail of this the firm or fund needs to make the necessary online notification to the UK’s Financial Conduct Authority – while the notification period is currently closed it is to reopen on 30 September 2020.  Firms availing of the TPR will be expected to apply for authorisation under the UKs new regime, but will be able to continue to operate ion under TPR in the meantime. Firms who do not enter the TPR before the Transition Period expires, will be in the UK’s Financial Services Contracts Regime instead, under which they can continue contracts entered in to prior to the end of the Transition Period but can’t write new contracts.