The impact of Brexit on UK financial regulation will be highly dependent on the relationship the country seeks with the European Union, the Financial Conduct Authority has said.
In the wake of the decision by British voters to leave the EU, the FCA has stressed it will work closely with firms, the Treasury, Bank of England and other UK authorities to examine the impact on UK regulation and to monitor markets.
In a statement issued this morning, the FCA said: “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.
“Firms must 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.”
While major regulatory reforms that are already being implemented, such as MiFID II, are not expected to be affected, the UK may face a different regulatory regime from European financial institutions in the future.