FCA Chief Andrew Bailey Highlights Brexit Isolation at ESMA

The UK Financial Conduct Authority (FCA) is already encountering some resistance from European authorities. The CEO of the watchdog, Andrew Bailey, shared the info with the Financial Times in an interview.

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Bailey shares that the European Securities and Markets Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) is engaging in certain discussions which do not include an FCA representative. The talks include information which relates to the future status of the relationship between the UK and the EU.

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The UK regulator is also excluded from discussions of sensitive topics such as what the requirements would be for UK firms to provide their services in the EU. ESMA is not shutting the UK regulator out from all talks related to Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term.

The news mimics the relationship between the Bank of England and its Prudential Regulatory Authority and the European Banking Authority.

FCA and Great Repeal Bill

The UK government is in the process of crafting the 'Great Repeal Bill', which is related to the harmonization of EU law with existing UK regulations. Domestic laws in the UK would get copied and be voted on by Parliament on a case-by-case basis.

According to the FT, the FCA has had to hire 15 extra lawyers to help with the task of rewriting the legislative framework.

The FT’s interview with the leader of the chief financial regulator in the UK shows the risks associated with a rift between the UK and the EU. Should both sides fail to agree on the terms of Brexit, some of the financial industry might face a set of challenges to operating cross-borders.

One front where the FCA and the ESMA are coordinating well is the retail forex and CFDs area. Last week both authorities issued official announcements that are clarifying the regulatory stance in Europe towards certain products.

The FCA decided to postpone the implementation of changes to its regulatory framework for next year, when MiFID II will permit national authorities to implement product intervention powers.