Deriv.com has announced that it will continue to operate in the UK after its exit from the European Union (EU) by informing its customers of its participation in the Temporary Permissions Regime (TPR). Discover how this will affect traders.
What is the TPR?
The TPR was implemented on January 1, 2021, at the end of the Brexit transition period. It provides firms with a temporary ‘passport’ to continue operating in the UK under the supervision of the FCA until they receive full authorization.
In the UK, financial services companies that operate within its jurisdiction must be regulated by the FCA. Brokers who were regulated by EU bodies (such as Cyprus CYSEC and Malta MFSA) could conduct business in the UK through the Freedom of Establishment or Freedom of Services passports before Brexit.
As of January, these principles are no longer applicable. Brokers who wish to continue providing financial services in the UK will have to be authorized by the FCA. TPR has extended the timeline for brokers seeking to obtain a license.
Deriv & the TPR
Deriv.com has informed its customers of the change in status in accordance with the participation requirements. It confirmed that funds invested with the broker are segregated to protect customer interests in the event of insolvency. It also reminded customers of their right to file a complaint with the Financial Ombudsman Service.
Only firms that have formally notified their desire to join the TPR are covered by the regime.