24 June, AtoZForex – Now that the Brexit is official, the UK brokers and firms are questioning what will happen to the UK’s overall regulatory framework. In response to these queries, this morning the FCA Brexit statement was issued, revealing more information. Will the Financial Conduct Authority (FCA) introduce new financial regulations in the UK?
FCA is in close contact with UK brokers
The FCA Brexit statement indicates that the regulator has been in very close contact with the UK brokers and firms ahead, during and post the European Union Referendum. The FCA discloses that:
“We supervise as well as the Treasury, the Bank of England and other UK authorities, and we are monitoring developments in the financial markets.”
The UK Brokers’ dilemma: Following UK laws or EU laws?
According to the UK watchdog much of the current financial regulation in the UK is derived from the EU legislation. Despite the results of the EU referendum, the FCA will keep the legislation intact, until any changes are made, which is a matter for the Parliament and the Government.
Hence, the UK brokers must continue following the UK laws, including those derived from EU law. Furthermore, the UK brokers and firms are required to continue implementing the plans for legislation that still has to come into effect.
What is the long-term impact of the Brexit?
The FCA comments further that the Consumers’ rights and protections will remain unaffected by the poll results, including the rights and protections derived from the EU legislation. The adjustment of these regulations will take place, only after the Government is going to change the applicable legislation.
When assessing the overall long-term impact of the Brexit on UK’s regulatory framework, depends on several factors. According to the FCA, one of which is how the UK will establish its relationship with the EU in the future. Commenting on this, the FCA Brexit statement reveals that: “We will work closely with the Government as it confirms the arrangements for the UK’s future relationship with the EU.”
Also see: Live Brexit Updates
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