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FCA tells City to prepare for hard Brexit

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UK’s banks and insurers must plan for a “hard” Brexit in case a transition period is not in place next March, the UK financial regulator said at an event today.

“With eight months until we exit the European Union in March 2019, it is important we all — regulators and industry — continue to plan for a range of scenarios,” said Nausicaa Delfas, head of international strategy at the Financial Conduct Authority, adding: “Across the FCA, together with colleagues from the Bank of England and the government, we have been working to develop a number of safeguards and contingencies, in the event of a hard Brexit, to ensure that ‘day 1’ works smoothly.”

Britain and the EU have agreed on a transition deal bridging Brexit in March next year and the end of 2020. So far it is unclear what sort of EU market access financial firms in Britain will have after the transition period ends, prompting many banks and insurers to have new hubs up and running in the bloc by next March to avoid potential disruption.




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