FCA Says Banks Must Still Adhere to EU Rules

The Financial Conduct Authority (FCA), Britain's financial markets watchdog, said today that it will continue to apply all European Union rules until there is further clarity on future relations with the bloc.

After voting to leave the union last month, the FCA issued a statement detailing the impact of 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 on financial Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.

Questions have since been raised as to whether banks and investment firms would continue having access to the bloc's single market, and if so, which rules would apply.

In his first annual meeting of the FCA as chief executive, Andrew Bailey said: "As a starting point, I would emphasise that the UK remains a member of the EU until such time as things change, and so all our rules continue to apply, whether they originate in the EU or not. Likewise, we will continue to implement EU legislation until the future is clear, something that is again a legal requirement”.

Bailey welcomed the government's statement that Britain would seek access to the single market in coming trade negotiations and stated that he valued being able to recruit staff from across the world.

Unsettling Times

The British government has not guaranteed that EU citizens in Britain will be allowed to stay after the country leaves the bloc.

Bailey acknowledged that the country is experiencing unsettling times, and said that the FCA was working on a new mission statement to help put the public’s mind at rest which is expected to be published in the early autumn.

Bailey also added the EU's cap on banker bonuses, a measure Britain had opposed, would also remain in place until the outcome of trade negotiations were known.

He commented: “Brexit won't mean a 'bonfire of regulations'."