FCA boss: Brexit not bad news for financial services

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Brexit will not necessarily be bad news for UK financial services, according to FCA chief executive Andrew Bailey.

In a speech this morning at a Thomson Reuters event, Bailey said some Brexit talk was too pessimistic about trade restrictions, where firms are based and the future of open markets.

He says: “Does Brexit have to mean abandoning the benefits of free trade and open markets in financial services? It should not.

“Does it require membership of the Single Market to get the benefits of free trade with the EU? No.

“Does Brexit mean abandoning the use of regulatory co-operation to ensure sufficient alignment of standards and outcomes so that open markets can prevail? It should not.”

“Brexit should not be conflated with whether or not to have open global financial markets and trade in financial services. The economic and financial cost of losing open markets is too great to be justified and is not a necessary response to the choice of Brexit.”

The FCA boss said no-one should take open markets for granted, and these should shape where firms choose to do business or base themselves.

Bailey said working with Government on repeal legislation was the regulator’s biggest current task.

He adds that the FCA will always work with other financial regulators to share information and best practice, and Brexit will not change this.