ESMA and the FCA respond to yet another Brexit delay

Brexit has been delayed again, with the EU granting the UK another three-month extension to sort out its divorce from the other member states.

The EU granted the extension until January 31 on Monday this week. Donald Tusk, the EU council president, warned that this delay “may be the last one”.

Now, both British and EU regulators have updated their advice about what to do next.

The European Securities and Markets Authority (ESMA) updated its advice about how the financial sector should prepare for a no-deal Brexit on Wednesday October 30.

Essentially, ESMA told market stakeholders that the preparation statements it published at the beginning of October no longer applies.

The regulator that it would issue “further announcements and updated measures as matters develop.”

Similarly, the Financial Conduct Authority (FCA) stated that there is no longer any need for firms to implement their contingency plans for Brexit on October 31.

It added that it would extend the period during which “firms and funds should notify it for entry into the temporary permissions regime to 30 January 2020.”

They now have until January 15 next year to inform the FCA if they want to make changes to their existing notification.

The FCA also noted that, in the meantime, firms should continue to follow the existing legislation. The British financial watchdog also said it would update its advice as things progressed.

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