The finance industry regulator, the Financial Conduct Authority (FCA) has strongly suggested to Parliament to hand it ‘unprecedented powers’ if a No Deal Brexit occurs.
A combined tri-party delegation of the FCA chief Andrew Bailey, Sam Woods, deputy governor of the Prudential Regulation Authority for banks (PRA) and John Glen, economic secretary to the Treasury suggested to the Treasury Select Committee chair, Nicky Morgan, that 53 statutory instruments (that’s an extension/changes to existing laws) would be required when transferring EU regulations into UK law and to continue a fully functional financial services regime should the UK leave the EU with a No Deal Brexit on 29th March.
53 new statutory instruments would indeed be ‘unprecedented’.
Chief executive Andrew Bailey of the (FCA) said: “If approved the FCA and Prudential Regulation Authority (PRA) would have the powers over regulations for up to two years without Parliament influences. It will help us to overcome any changes in requirements in UK firms doing business with EU firms and be able to deal with quickly any issues if they arise”. He added: “We also need to allow time for firms to implement changes and adjust, as EU regulations will not be passed in time”.
There are further discussions planned later this month on the future of financial services regulations should there be a no deal and how best to implement any changes to regulations as well as their overall impact.