The Financial Conduct Authority (FCA), Britain’s financial markets watchdog, said today that it will continue to apply all European Union rules until there is further clarity on future relations with the bloc.
After voting to leave the union last month, the FCA issued a statement detailing the impact of Brexit on financial regulation.
Questions have since been raised as to whether banks and investment firms would continue having access to the bloc’s single market, and if so, which rules would apply.
In his first annual meeting of the FCA as chief executive, Andrew Bailey said: “As a starting point, I would emphasise that the UK remains a member of the EU until such time as things change, and so all our rules continue to apply, whether they originate in the EU or not. Likewise, we will continue to implement EU legislation until the future is clear, something that is again a legal requirement”.
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Bailey welcomed the government’s statement that Britain would seek access to the single market in coming trade negotiations and stated that he valued being able to recruit staff from across the world.
The British government has not guaranteed that EU citizens in Britain will be allowed to stay after the country leaves the bloc.
Bailey acknowledged that the country is experiencing unsettling times, and said that the FCA was working on a new mission statement to help put the public’s mind at rest which is expected to be published in the early autumn.
Bailey also added the EU’s cap on banker bonuses, a measure Britain had opposed, would also remain in place until the outcome of trade negotiations were known.
He commented: “Brexit won’t mean a ‘bonfire of regulations’.”