FCA chief executive Andrew Bailey is calling for regulators to back a proposed implementation period after Brexit to avoid an economic “cliff edge”.
Speaking at The International Financial Services Forum today, Bailey continued pushing for cooperation between the British and European regulators, this time pointing to preserving financial stability.
He says: “Brexit has global implications, not just for the UK and EU, so it is important that we get this right. This matters in financial services because the risks around contract continuity, data sharing, and broader market disruption could jeopardise financial stability, the preservation of which is a shared objective of both sides.”
Bailey says agreement to an implementation period will also provide better continuity for British firms doing business in the EU.
He says: “Regulators and authorities in the UK and the EU share common objectives to preserve financial stability, and we have a common obligation to do everything we can and work together to do that. Financial stability is far too important to engage in a standoff.”
The regulator said earlier this month that it expects to incur £30m in costs over Brexit, which is equivalent to just under six per cent of its total operating budget.
Of that, £5m will come from additional fees, while another £5m is from the regulator’s reserves.
Bailey has also previously called for a memorandum of understanding to be put in place with the EU to insure the continuation of financial trade.