FCA issues statement on financial regulation status after Brexit vote

The Financial Conduct Authority (FCA) has reacted to the vote in favour of a Brexit and stressed that financial regulation remains applicable until any changes are made.

The referendum on 23 June saw the UK deliver a majority verdict in favour of leaving the European Union.

The watchdog detailed that the decision by the electorate has significant implications for the country.

In a statement the FCA reported: "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
It stressed that firms must continue to abide by their obligations under UK law, including those derived from EU law and that they must continue with implementation plans for legislation that is still to come into effect.

The FCA continued: "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.

Relationship
"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. We will work closely with the government as it confirms the arrangements for the UK's future relationship with the EU."

The regulator also highlighted that it is in "very close contact" with the firms it supervise as well as the Treasury, the Bank of England and other UK authorities.

"We are monitoring developments in the financial markets," it detailed.

Biba
Following the Brexit vote, the British Insurance Brokers' Association (Biba) has committed to working with the government to make sure brokers are respresented during the negotiations.

Prior to the referendum, Biba stated that in its view brokers would be better off remaining in the EU.

Earlier this week the chairman of the Association, Lord Hunt of Wirral, called on members to consider the benefits to the broking sector of remaining in the union.

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