Ocaso remain firmly committed to the UK market, whatever happens with Brexit
In the worst case scenario the repealing (or switching off) of passporting rights will be implemented by the Government through legislation already laid in Parliament (the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018).
Besides repealing passporting with effect from exit day (ie 11pm on 31 January 2020), the legislation will also deliver a temporary permissions regime (TPR). The aim of the TPR is to allow firms that wish to continue carrying out business in the UK in the longer term to operate in the UK for a limited period after withdrawal while they seek authorisation from UK regulators. Under the TPR, a firm that is authorised to carry on regulated activities in the UK through Freedom of Establishment (FOE) or Freedom of Services (FOS) passporting can carry on those activities for a maximum of three years.
It should also be noted that Ocaso is already seeking authorisation from the UK regulators and that Ocaso is applying for a third country branch authorisation for the UK operations, from both the PRA and the FCA, to ensure our future in the UK market regardless of Brexit. We have had meetings with the PRA and have support from highly regarded professional consultancy and legal firms to ensure the process of direct authorisation for the UK operation is a smooth one.
No impact is expected on our customers from Brexit, as the contractual agreement, law applicable to the contract, claims management and handling services, underwriting services and customer service are and will be based in the UK. Ocaso will continue to operate through its UK branch from exit day under passporting rights (if there is a transition period), or under the TPR (if there is no transition period) until its UK third country branch authorisation becomes effective.
Brexit will not therefore affect Ocaso’s ability to issue new policies and handle claims under existing policies (including those issued before Brexit) from its UK branch.