Fintech UK Latest News Regulation

FCA Grants ONPEX Transitional UK-Passporting Rights in Event of No-Deal Brexit

ONPEX, a provider of multi-currency IBAN accounts, has been awarded a temporary permission regime (TPR) by the UK’s Financial Conduct Authority (FCA). This status will allow the EEA-based payment institution to continue providing financial services to new and existing regulated businesses within its current passporting permissions in the UK.

ONPEX has taken the step to gain a TPR as part of its plans to ensure it can continue to provide a seamless client experience in its services in the UK, if the country withdraws from the European Union on October 31st, 2019. This regime will last for one year, giving ONPEX the opportunity to gain full FCA authorisation. Under this new permission, ONPEX will continue to open the European market to its clients with ongoing IBAN issuing, cross-border SWIFT and European SEPA payments, as well as seamless FX. 

The FCA intends to make use of the temporary transitional power to ensure firms, like ONPEX, can continue to comply with their regulatory obligations as they did before the UK’s exit.

If the UK leaves the EU without an implementation period, the passporting regime will fall away and EEA-based firms will no longer be able to passport into the UK from the exit day onwards – unless they enter the TPR. Therefore, to foster the payment institution’s commitment of providing simplicity, transparency and automation to the payments and banking industry, it’s fundamental for ONPEX to be awarded the TPR status. ONPEX has secured the permission to prevent the disruption caused by Brexit from impacting its clients, revenue, and current business model. 

The FCA intends to make use of the temporary transitional power to ensure firms, like ONPEX, can continue to comply with their regulatory obligations as they did before the UK’s exit. This will enable firms to adjust to post-exit requirements in an orderly way and means a clear and simple transition for the business’ clients.

Christoph Tutsch, CEO at ONPEX, added: “It’s important that we prepare for all eventualities to ensure our customers are not impacted by any change in law from the UK or EU. By gaining a TPR we have cemented our place in the market, whether the UK leaves with or without a deal. This means our clients still receive the transparent, automated, and simple payment solutions they require.”

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