A quarterly round-up of key announcements and developments in UK financial risk and regulation: covering 1st June to 26th August 2016.
Links to underlying source stories or documents are contained within individual articles in this blog.
The British EU referendum (‘Brexit’) vote on 23rd June 2016 was the most significant political and economic event in the UK and Europe for many years. So inevitably this bulletin contains some Brexit coverage. We try to avoid speculative treatment and broader political comment, and instead just summarise key announcements and developments relating to risk and regulatory aspects of Brexit.
Against the background of Brexit, the regulators pushed on with their technical agenda in a number of areas during the period. This included MiFID, structural reform (ring-fencing) and various aspects of capital regulation. The new Head of the Financial Conduct Authority warned that Brexit would not give rise to a “bonfire” of existing regulations. In other words regulated firms should expect – at least in the short term – a continuation of existing and proposed supervisory practice irrespective of Brexit.
Still, three themes seem to predominate in the post-Brexit environment for financial services firms:
(1) There will be ongoing uncertainty over both timing and substance.
(2) It is likely there will be some impact on passporting rights, into and out of the remaining EU. This will be covered in a future Prism-Clarity blog.
(3) Firms now have to plan and prepare intensively for a range of uncertain scenarios, while continuing to maintain both BAU and already-known implementations.
The articles in this blog do not constitute advice, but please contact Prism-Clarity for further information, including where to get the best advice.