ASIC Lays Out Brexit Plan Ahead of Upcoming Deadline

The Australian Securities and Investments Commission (ASIC) today released its preparation plan for Brexit. With the deadline less than two months away, the Australian regulator is planning for the worst, but hoping for the best.

The United Kingdom is scheduled to leave the European Union on March 29 this year. This is expected to take place regardless of whether a deal has been reached between the two.

According to ASIC’s statement today, the regulator is monitoring the situation closely and has been in close contact with the Financial Conduct Authority (FCA), the Bank of England (BoE) and other Australian financial authorities to identify and plan for potential 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-related impacts, including a no deal situation.

Commenting on the preparation plans, ASIC Commissioner Sean Hughes said: “ASIC is well placed to manage the impacts arising in a ‘no deal’ scenario. We have been working closely with the UK’s financial regulators and our aim is to limit disruption to Australian financial services and our markets.”

As part of its plans, ASIC wants to strengthen its relationship with UK financial regulators, such as the FCA, post-Brexit. Once the UK has left the bloc, the FCA will take on more responsibility and acquire functions and supervisory powers in relation to credit rating agencies, benchmarks and trade repositories.

ASIC to Set Up new MoU with FCA

These are currently managed at the European level by 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). The BoE will also take on new functions which are currently exercised by ESMA, in relation to non-UK central counterparties.

“ASIC and the FCA will enter into new Memorandums of Understanding (MoU) on trade repositories and credit rating agencies and will update our existing MoU on alternative investment funds. ASIC and the BoE will update information sharing arrangements on clearing and settlement facilities,” the statement said.

The BoE has also confirmed that it will conduct an equivalence assessment of Australia’s regime for central counterparties. The Australian regulator, along with the Reserve Bank of Australia (RBA), the country’s central bank, is working together with the BoE on the equivalence assessment, ASIC added.