Brexit – its impact is already making itself felt
17th July 2016
The outcome of the vote will have a significant effect on intermediaries, providers and fund managers and the FCA, whilst politically neutral on the issue of Brexit, confirmed in a statement on 24th June 2016 following the vote that: Brexit “has significant implications for the UK”.
It pointed out that much of the 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 FCA also said consumers’ rights and protections, including any derived from EU legislation, are unaffected by the result of the referendum and will remain unchanged unless and until the government changes the applicable legislation.
Brexit is likely to test intermediaries’ investment committees’ processes as change needs to be managed in an orderly way and effective communication both with clients and internally with advisers will be key.