Change or be left behind: Four ways to manage financial regulation in the age of uncertainty

Avoiding the impact of Brexit

The Brexit clock is ticking. Following the launch of the Financial Conduct Authority's (FCA) consultation into its supervision of international firms in the UK last month, those firms serving UK customers through local branches will have to spell out their plans for full UK authorisation once the Brexit transition window closes in December.

The changes will apply to all firms, whether they are based in the European Economic Area or not, and must account for potential risks or harm caused by varying rules between countries to ensure adequate protections for consumers. When EU directives cease to apply to UK firms on 1 January 2021, the FCA is expected to begin adopting a more bespoke approach to the regulation of international companies. This matters. Long-term, divergence from EU regulation, in tandem with the FCA's changing regulatory approach, will provide opportunities for the UK to fine-tune and optimise its supervis...