The financial services industry has been forewarned: if there’s a messy no-deal Brexit in March, they’ll have 15 months to get their act together and fully comply with new rules laid out by the country’s financial regulators.
The Bank of England (BoE) and the Financial Conduct Authority (FCA) published a “near final” version of the UK rules that would come into effect if Britain leaves the European Union on 29 March without a transition deal.
Banks, asset managers, insurers and brokers would be covered by these updated rules and could face penalties if they don’t comply in time.
The final version of the rulebook is expected to be published on 28 March, a day before Brexit, if the the UK and EU do not ratify a divorce deal.
However, if there is a Brexit transition deal, financial firms would continue operating under EU rules until the end of 2020 when the UK wants new trading terms with the bloc to begin.
The FCA’s executive director of international operations, Nausicaa Delfas, said Thursday’s announcement marked a significant milestone in the financial sector’s preparations for a no-deal Brexit.
“They ensure that there is a functioning regulatory regime from day one, and that firms are clear as to the requirements they need to meet by end March 2019 and beyond, so they can continue to meet the needs of their customers,” Delfas said.
The BoE regulates banks across the country, including Royal Bank of Scotland (RBS.L) and Barclays (BARC.L). It’s also in charge of setting interest rates, maintaining financial stability and issuing new bank notes.
The FCA also regulates Britain’s financial services industry and works to protect consumers and promote healthy competition in the sector. It has oversight over 58,000 firms.
Source: Yahoo Finance UK