FCA Demands Financial Company Brexit Plans

FCA Demands Financial Company Brexit Plans.

It has been reported that the Financial Conduct Authority has written to all major financial institutions, banking, insurance and investments groups asking them to confirm what their contingency plans are for the impact of Brexit.

Many financial services company (including us) use the finance industry’s Financial Services Passport to be able to offer services, cross border within Europe.

Clearly, this may not be possible in a post Brexit World.   Many European’s would like to attract the UK’s biggest export, financial services, to base in their country, so we cannot see a financial services passport deal being agreed post Brexit.  This may mean that many city firms may relocate much of their operations outside the UK and within Europe.

Give the impact not just on jobs and the economy, it will also impact on stock markets.  Many FTSE listed companies are finance companies.  The impact of a major institution relocating has impact across virtually every sector of society.

It is right, and no surprise, that the FCA has asked for impact and contingency plans.  Relocating will impact:

• Employment
• Offices
• Capital/financial strength of remaining UK subsidiaries of larger groups.
• Property and investments held for investors by those companies
• Data protection
• Services available to UK consumers
• Data protection and more.