Axiom rules and the Brexit 'Temporary Transitional Power'
As you will be aware, following the withdrawal from the European Union by the United Kingdom on 31 December 2020, onshored legislation will apply to firms within the UK.
However, as detailed by the FCA in their update here, UK firms will benefit from a further transition period extending until 31 March 2022, under what is known as the Temporary Transitional Power (TPP.)
This update explains what is changing in Axiom to help accommodate during the TPP period.
What do I need to do during the TPP?
As per the regulator guidance linked above, Axiom understands that where a rule originated from the EU, you will need to evidence compliance with equivalent onshored (UK) rules by 31 March 2022. Until this date, you may continue to comply with the EU rules.
It is important that you read and understand the impact on these changes for your own firm, but most rules in Axiom are not affected by this change. Please see the end of this article for a full list of affected rules.
What does this mean for rules in Axiom?
The regulator marks rules with a 'type' which is reflected in Axiom when viewing the rule in a number of places. Most notably this differentiates 'Rules' from 'Guidance' provisions.
Going forward, the rule type in Axiom will be used to identify EU vs UK rules. Affected rules will exist twice in Axiom with the same name, including an EU and a UK version.
The application will be updated to show the rule 'type' in more places, including the rule update screen, allowing you to tell the difference between different versions of the same rule.
Please note: some rule areas (notably CASS) have already been brought into line with UK/onshore requirements and do not have specific UK rules or transitional arrangements. The rules as provided by the regulator and found in Axiom apply directly as normal.
When will this happen?
We'll make the necessary changes to show the new UK versions of affected rules in January. The system will also be updated with the changes necessary to help you identify EU/UK rules at the same time.
In the meantime, existing (EU) rules continue to exist in Axiom and your mappings to these rules will not be affected. You don't need to take any action on these immediately.
However you will want to ensure all mappings are updated to the new UK rules at some point between our January 2021 update and 31 March 2022.
If you have any further queries about the TPP period and rules in Axiom, please reach out to us at firstname.lastname@example.org.
The full list of Axiom rules affected by the new 'UK' type is as follows:
COBS 11 Annex 1