In a very carefully worded statement put out in the wake of yesterday’s pro-Leave Brexit vote, UK financial regulator The Financial Conduct Authority (FCA) reminded investors, traders and regulated companies that it was ‘business as usual’ for the time being, with existing financial regulation in the UK – much of which derives from EU legislation – remains in place.
For the time being.
The interesting part of the FCA’s statement were the hints it made that the UK was likely to repatriate financial regulation post-Brexit, something it lost control of during the EU years.
The FCA’s statement included phrases such as ‘This regulation will remain applicable until any changes are made‘, and ‘until the Government changes the applicable legislation‘.
The full statement issued by the FCA reads as follows:
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FCA statement on EU referendum result
On 23 June, the UK voted to leave the European Union (EU). This has significant implications for the UK.
The FCA is in very close contact with the firms we supervise as well as the Treasury, the Bank of England and other UK authorities, and we are monitoring developments in the financial markets.
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.
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 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.