View more on these topics

FCA: We must prepare for ‘no-deal’ Brexit

The FCA has said it is continuing to make contingency plans for all Brexit scenarios, including “no-deal”, as negotiations continue.

The government’s latest white paper on Brexit proposed an “equivalance of rules on an outcomes basis” regime for financial services allowing the UK and EU access to each others markets.

In a speech by FCA international director Nausicaa Delfas this morning, she says that while “the FCA takes no position on whether Brexit is a good or bad thing in itself”, the regulator will continue to support the government with technical advice.

Delfas says that the transition period until the end of December 2020 “is a good thing for both sides” and is something the FCA had called for to give more preparation time and to smooth the implimentation of Brexit.

However, she notes “cliff-edge” risks still exist, including contract continuity, where a no-deal scenario could leave insurers unable to pay out claims on policies, and that because negotiations are still ongoing the regulator “must prepare for all scenarios”.

Backstops the FCA has been working on include its Temporary Permissions Regime which, if necessary, will allow European firms and funds trading into the UK under a passporting arrangement to continue doing so without a further authorisation requirement for a short period should passporting end.

However, the EU has not yet outlined any similar set up for UK firms wishing to passport out.

Delfas says that despite the uncertainty “firms need to maintain threshold conditions and [the FCA’s] rules throughout”

She says: “We expect you to continue to service your customers as fully and fairly as the law permits, and to communicate with affected customers, in the UK and elsewhere, in a clear and timely fashion, including, for example, what regulatory protections will apply for your customers.

“It is of course for the government to negotiate – but we have been clear about thesort of arrangements on financial services that we believe are possible, and desirable, to maximise market access and benefits to consumers in the UK and EU. These include the five principles of: cross border market access; consistent global standards to support global markets; co-operation between regulatory authorities; influence over standards; and the opportunity to recruit and maintain a skilled workforce.”

Recommended

5

FCA hits out at ‘spurious complexity’ in platform charges

FCA director of competition Mary Starks has described instances of “spurious complexity” in platform charging in the wake of the regulator’s review of the market this morning. Speaking to Money Marketing, Starks notes findings that, particularly on the direct to consumer side, platforms can levy between 15 and 35 different fees in total, and use […]

MM-AutumnBudgetBanner
3

Lifetime allowance 2018/19 increase confirmed but pensions absent

The Government has confirmed that the lifetime allowance 2018/19 will rise in line with inflation, but savers have been offered little else in the Autumn Budget. The lifetime allowance will increase from £1m to £1,030,000 to match CPI from 2018/19.  Though the maximum amount the can be saved each year into a Junior Isa or […]

Flurry of FCA activity to impact mortgage advisers

Regulator unveils proposed directory of senior financial services professionals, publishes fees for 2018/19 and approves new tech-based mortgage firms. The Financial Conduct Authority published a raft of reports, consultations and policy initiatives over the past month and many will have a direct impact on the mortgage sector. Recently, the FCA has put forward plans to […]

Delivering advice and guidance in the workplace

Three advisers share their ideas and experiences of helping employees with their financial decisions The workplace is instrumental in engaging people to save for retirement. How are advisers helping employers provide advice or guidance to their employees? Telephone guidance Financial education provider and advice firm Wealth at Work recently launched a telephone guidance service to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. This is what happens when a country is afflicted with insanity.

  2. Neil Liversidge 19th July 2018 at 10:23 am

    We are prepared – we’ve bought an extra large Union flag to hang outside our office.

  3. I think a no-deal extrication from the shackles of the EU is all but inevitable. No matter what proposals the UK government puts forward, somebody, somewhere, here or in Brussels, will seek to scupper/ frustrate/ obstruct it by throwing a spanner in the works.

    So to hell with them. No deal will be better than a bad deal and possibly, eventually, the best option of all.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com