The UK funds industry must continue to implement EU legislation despite the vote for the UK to leave the EU. This is effectively what the Financial Conduct Authority (FCA) said this morning following the success of the leave campaign.
“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 said in a statement.
The relationship that Britain wants to have with the EU will determine the longer-term regulatory framework for financial services, the FCA said.
The financial regulator issued a statement on the Brexit in light of the UK’s EU referendum, which saw leave gain 51.9% of votes.
“This has significant implications for the UK,” the regulator said.
“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.”
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, the regulator said.
The European Fund and Asset Management Association (Efama) said: “The decision today means that there is now less uncertainty about the direction this issue will ultimately take. Nonetheless, the practical consequences cannot be clearly identified before a proper and longer term impact assessment has been made.”
Efama said it would spend time consulting with its members across Europe to “gather feedback and reactions, and to determine which next steps will be needed in due course”.
©2016 funds europe