Featured Product

    FCA and BoE Issue Updates on Brexit Preparations for Financial Sector

    September 11, 2019

    FCA and BoE published important information to help regulated firms in preparing for Brexit. FCA specifies that, as UK prepares to leave EU, regulated firms should have, by now, considered if or how they will be affected and what action they may need to take. FCA also published links to dedicated Brexit websites hosted by certain financial regulators in the European Economic Area (EEA) member states. Furthermore, BoE published a letter from the Governor Mark Carney, in response to a previous Treasury Committee letter concerning the Brexit scenarios that were published by BoE in November 2018. The publication on Brexit scenarios had analyzed how different Brexit outcomes would affect the ability of BoE to meet its monetary and financial stability objectives.

    The UK will leave EU without an implementation period on October 31, 2019, unless a deal is approved or a further extension is agreed. To help firms prepare, FCA has established a dedicated telephone line for firms that constitute a UK business with any business in EEA, that passport into the UK and have not notified FCA for entry into the Temporary Permissions Regime, that have consumers in EEA, and that transfer personal data from EEA. FCA described considerations for UK firms and EEA firms conducting business in UK. FCA also highlighted issues for all firms to be aware of including passporting, changes to legislation in UK, temporary transitional power, data sharing, and communicating with customers affected by Brexit. As a next step in preparing for Brexit, FCA expects that firms should complete their assessment of the extent to which Brexit affects them. If affected, firms should:

    • Work out and plan for implementation of the changes that might have to be made to the business
    • Communicate the information to the customers that might be affected by the changes
    • Continue to consider the implications of a range of possible scenarios, including the potential absence of any implementation period

    BoE had published scenarios on Brexit outcomes in November 2018. The recently published BoE letter highlights that the Brexit scenarios BoE had published earlier were not forecasts, rather they illustrated what could happen under a range of key assumptions. A Treasury Committee letter to BoE had asked whether the analysis published in November 2018 remained fully relevant given any developments since November; if not, how the developments may have changed the outlook in each scenario. The most recent response letter from the BoE Governor states that, since November, there have been some developments in economic data and financial markets, but these do not merit updates to any of the BoE November scenarios. The letter also mentions that advancements in preparations for a no-deal, no-transaction scenario means that the BoE assessment of a worst-case, no-deal, no-transaction scenario has become less severe. The letter expands on details underlying these assessments.

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance Securities, Brexit, Financial Stability, Brexit Scenarios, BoE, FCA

    Related Articles
    News

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    News

    EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway

    The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.

    February 25, 2021 WebPage Regulatory News
    News

    PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks

    In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.

    February 25, 2021 WebPage Regulatory News
    News

    FSB Sets Out Work Priorities for 2021

    In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.

    February 25, 2021 WebPage Regulatory News
    News

    EU Publishes Corrigendum to Revised Capital Requirements Regulation

    EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).

    February 25, 2021 WebPage Regulatory News
    News

    ESAs Issue Statement on Application of Sustainability Disclosures Rule

    ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).

    February 25, 2021 WebPage Regulatory News
    News

    EC Consults on Crisis Management and Deposit Insurance Frameworks

    EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.

    February 25, 2021 WebPage Regulatory News
    News

    HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs

    HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.

    February 24, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards for Supervisory Cooperation Under IFD

    EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.

    February 24, 2021 WebPage Regulatory News
    News

    BoE Addresses Banks in Scope of First Resolvability Assessment

    BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.

    February 24, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6629