Deriv.com has confirmed its intention to continue operating in the UK after its exit from the European Union (EU) by notifying customers of its participation in the Temporary Permissions Regime (TPR). Find out what this means for traders.
What Is The TPR?
The TPR came into effect on 1st January 2021, at the end of the Brexit transition period. It grants firms a temporary ‘passport’ to continue operating in the UK under the supervision of the FCA until they obtain full authorisation.
In the UK, financial services firms operating within the jurisdiction must be regulated by the FCA. Pre-Brexit, brokers who were regulated by EU bodies (such as the Cyprus CYSEC and Malta MFSA) were able to conduct business in the UK through the Freedom of Establishment or Freedom of Services passports.
As of January, these principles no longer apply. Brokers wishing to continue offering financial services in the UK will need to be authorised by the FCA. TPR has extended the timeline for brokers seeking to secure a license.
Deriv & The TPR
Under participation requirements, Deriv.com notified its customers of the change in status. It confirmed that funds invested with the broker are segregated to protect customer interests in case of insolvency. It also reminded customers of their right to file a complaint with the Financial Ombudsman Service.
Only firms that have made a formal notification of their wish to join the TPR are covered by the regime. If you have a UK trading account with other brokers, you may want to check your email or platform for any updates. If you haven’t heard anything, your broker may be operating outside of UK legislation and the associated protections.