The UK’s Financial Conduct Authority (FCA) has said that Britain’s decision to leave the European Union would have significant implications for the country’s financial regulation.
The watchdog said that most of the financial regulation used in Britain is currently derived from EU legislation, which will be retained till any amendments are made by the government.
Consumers’ rights and protections including those derived from EU legislation will also remain unchanged following Brexit, until the government amends the law, the regulator added. Similarly, firms must continue to comply with their obligations under UK law, including those derived from EU law, till new law is implemented.
"The longer term impacts of the decision to leave the EU on the overall regulatory framework for the UK will depend, in part, on the relationship that the UK seeks with the EU in the future," FCA said.
The regulator said that it is in close contact with the Treasury, the Bank of England as well as other UK authorities, and is also monitoring the financial markets.