Since the end of the Brexit transition period, UK firms can no longer rely on passporting rights to access EU markets. Instead, they must navigate a more fragmented regulatory landscape, securing licences in each jurisdiction where they intend to operate. This shift has added complexity to authorisation and compliance processes.
The Post-Brexit Authorisation Landscape
Under EU law, the UK is now classified as a third country. This means UK-based firms must obtain authorisation from national competent authorities (NCAs) in each EU member state where they provide services. Some divergence between UK and EU regulation is also emerging, adding an additional layer of complexity for firms with cross-border ambitions. While some equivalence arrangements do exist, they are not a substitute for local licensing.
Strategies for Cross-Border Licensing
Firms have several practical options to continue serving clients across multiple European jurisdictions. Establishing local subsidiaries or regional hubs is a popular option as this enables firms to apply for local authorisation directly with the relevant NCA. In some cases, outsourcing or using third-party providers based in the target jurisdiction may be a more efficient alternative to full authorisation. Firms should obtain legal and regulatory advice on what their best option would be, and engage with local counsel early in the process to understand jurisdiction-specific rules and expectations. Where appropriate, firms may also need to coordinate with the FCA to manage outbound services from the UK in line with domestic obligations.
How can Firms Prepare for and Maintain Compliance Across Jurisdictions?
Firms operating across borders must remain alert to regulatory divergence, both between the UK and EU and among individual EU member states. In situations where there are differing and competing requirements, aligning to the most stringent standard is often the safest strategy. Internal policies should be flexible enough to accommodate jurisdictional variation, with clear escalation paths and controls. Investment in RegTech tools and scalable digital infrastructure can support real-time monitoring and centralised oversight. Firms should also document how compliance responsibilities are allocated across entities, including how regulatory risks are identified, managed, and reported. This becomes increasingly important as operations grow in scope and complexity. In a post-Brexit landscape, UK firms must adopt dual authorisation and compliance strategies that are agile, well-informed, and built for scale. Success depends on forward planning, local regulatory insight, the smart use of outsourcing, and strong governance across borders. With the right infrastructure and partnerships in place, firms can maintain access to several markets and maintain regulatory credibility across multiple jurisdictions.
Contact Novatus Global today to learn how we can support your business with its post-Brexit authorisations.
