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FCA urges firms to prepare for ‘no-deal’ Brexit

Brexit_arrowsThe UK’s financial regulator the Financial Conduct Authority (FCA) is urging firms to make sure all necessary steps are in place to protect customers from the what it calls the “negative impacts of leaving the EU, whatever the outcome of negotiations” – including the increasingly likely event of a so-called ‘no-deal’ Brexit.

The FCA has also published updated information which aims to help wholesale banks, markets and asset managers finalise preparations for Brexit day in less than five weeks.

The regulator’s aim is to prepare for “as smooth a transition as possible when the UK leaves the EU”.

According to the FCA, firms in the UK should consider what information needs to be communicated to their customers clearly, fairly and not misleadingly.

“UK firms doing business in the European Economic Area will need to consider if and on what basis it may be possible to continue after Brexit,” the FCA said in a statement.

“As firms prepare for EU withdrawal, it is important that execution is managed appropriately. If a firm decides to expand its presence elsewhere in Europe, it is crucial the new structure enables the FCA to supervise the UK business, and that it continues to meet threshold conditions.”

Nausicaa Delfas, executive director of international affairs at the FCA, said: “While we appreciate there remains uncertainty, firms should consider the impact of all scenarios on their business, and on their customers.

“As a guiding principle, we expect firms to adhere to our regulatory standards throughout.  To assist firms, we have updated the information on our website.”

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