In a speech delivered by Nausicaa Delfas (Executive Director of International) at the UK Financial Services Industry Beyond Brexit Summit in London, the FCA discussed their preparations for Brexit and beyond.
Whilst it is still the case that nothing is set in stone with regards to the UK leaving the EU, the FCA were keen to emphasise that they are preparing for whatever scenario emerges and are continuing to focus on their role of ensuring that markets work well for consumers and market participants.
With such a fluid situation relating to Brexit, the FCA have of course undertaken extensive preparations to be ready for a no-deal exit from the EU. This includes publishing extensive guidance for firms on their obligations and what actions they may need to take.
As a result of the progress and actions taken by the financial services regulators and industry as a whole, the Financial Policy Committee has concluded that the UK financial system is fully prepared for a disorderly Brexit (whilst still acknowledging that a no-deal EU exit will still be difficult and disruptive). The FCA offered the below points in summary of their preparedness to leave the EU without a deal (if this should happen in 2020): –
- Continuity for firms with regards to the FCA’s legislative and regulatory frameworks, whereby the rules that aleady apply today will be much the same if we leave
- Any updates or additions to the rules will come with plenty of time for firms to implement and comply with the new rules
- UK consumers will still be able to receive services from EEA financial firms without interruption (due to the FCA’s temporary permissions regime)
- Continuity in the FCA’s relationships and agreements with regulators around the world, including an agreed Memoranda of Understanding (MOUs) with all European Supervisory Authorities and Member States
You can read the full speech on the FCA’s Website