The UK will officially leave the UK on Friday January 31. Now the UK’s leading financial watchdog has given advice to firms on what to do next.
To begin with, the Financial Conduct Authority (FCA) the UK leaving the EU will not immediately mean an end to European rule.
Instead, January 31 will mark the beginning of an implementation period ending on December 31. During the transition period, EU laws will still apply. This means UK firms, including FinTech and RegTech companies, will still have access to the passporting rights with the EU and the European Economic Area, which are regulated under the revised Markets in Financial Instruments Directive (MiFID II). Losing these rights have been a chief concern for FinTech founders in the UK.
So for the time being, the FCA says there will be no changes in financial firms’ reporting duties.
“The work the FCA has undertaken, along with government and the Bank of England, ensured the financial services sector was one of the best prepared industries for any of the possible Brexit outcomes,” Andrew Bailey, the exiting CEO of the FCA. “The implementation period gives firms a period of certainty while negotiations are continuing on our future relationship with the EU.
“The FCA intends to use this time to work with government, the Bank of England, firms and other regulators to ensure the financial services industry is ready for the end of 2020. We will continue to keep firms and consumers updated on any changes that will impact them.T
Bailey is leaving the FCA to run the Bank of England.
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