FCA Issues Statement Detailing Impact of Brexit on Financial Regulation

The UK’s Financial Conduct Authority (FCA) has issued a statement following the UK’s decision to leave the European Union which is expected to have far-reaching implications for the country.

The FCA is monitoring developments in the financial markets.

The financial watchdog has stated that it is in very close contact with the firms it supervises, as well as the Treasury, the Bank of England and other UK authorities, and that it is monitoring developments in the financial markets.

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It added: “Much financial regulation currently applicable in the UK derives from EU legislation. This regulation will remain applicable until any changes are made, which will be a matter for Government and Parliament.”

Obligations

The FCA has urged that firms continue to abide by their obligations under UK law, including those derived from EU law and continue with implementation plans for legislation that is still to come into effect.

In addition, consumers’ rights and protections, including any derived from EU legislation, are unaffected by the result of the referendum and will remain unchanged unless and until the Government changes the applicable legislation.

The Future

The longer term impacts of the decision to leave the EU on the overall regulatory framework for the UK will depend, in part, on the relationship that the UK seeks with the EU in the future. The FCA will work closely with the government as it confirms the arrangements for the UK’s future relationship with the EU.

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