FCA: EU negotiations will shape future of regulation

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The FCA says regulation will be shaped by the negotiations to come on the future relationship between the UK and the EU.

In a statement this morning, the regulator says the vote to leave the EU will have “significant implications” for the UK and for financial regulation.

It says it is in very close contact with regulated firms and with the Treasury, Bank of England, and other UK authorities, and that it is monitoring the financial markets.

The FCA says: “Much financial regulation currently applicable in the UK derives from EU legislation. This regulation will remain applicable until any changes are made, which will be a matter for Government and Parliament.

“Firms must continue to abide by their obligations under UK law, including those derived from EU law and continue with implementation plans for legislation that is still to come into effect.”

The regulator says consumer protections, including those within EU rules, are unaffected by the referendum results.

It adds: “The longer term impacts of the decision to leave the EU on the overall regulatory framework for the UK will depend, in part, on the relationship that the UK seeks with the EU in the future.

“We will work closely with the Government as it confirms the arrangements for the UK’s future relationship with the EU.”