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Brexit – British financial supervisors are interested in the contingency plans of fund managers Brexit 

Brexit – British financial supervisors are interested in the contingency plans of fund managers

 British Financial Supervisory Authority (UK) has asked for detailed information from the largest management companies in London about the contingency plans for the possible consequences of UK membership.

    The Financial Conduct Authority (FCA) in Financial Times reported Thursday that the Financial Conduct Authority (FCA) is primarily interested in the 30-question questionnaire on how the British model of institutional investment companies operating in City is expected to affect Britain’s exit from the European Union.
    The questions also include whether management companies are planning to move jobs or areas of activity from London to other EU countries.
    Recently, the Bank of England also addressed letters to the London City Financial Services companies, warning companies that they should be more prepared than ever for “any chance” arising from the termination of British membership.
    The British central bank, in a rather harsh letter, warned that City’s preparedness was “uneven” and that contingency plans so far had not been investigated to determine whether they would end up with the possible worst outcome of the Brexit process.
    The Bank of England call this least worst opportunity that no new trade or financial regulatory oversight agreement between London and the European Union could be reached by the end of the exit negotiations.
    By July 14, the central bank requested a written confirmation from each financial services company in the City that their management was involved in preparing contingency plans for the termination of UK membership. The Bank of England also asked a brief summary of the plans for these plans and assurances that contingency plans provide a good answer to a wide range of possible scenarios.
    Financial supervisors have briefly warned the UK Government that the activity of thousands of service providers in the financial sector in London depends on passport rights, that is to say, the EU’s continental markets, particularly service licenses that provide access to euro area markets and would therefore pose a serious risk, If Britain were to withdraw from the European Union’s internal market.
    According to figures from the FCA study at the time, 5476 London-based financial service groups have almost 340,000 active passport licenses at present to offer their services to other EU economies.
    One of the cornerstones of the British-Conservative British government’s Brexit plans is that Britain can not remain a member of the EU’s single market once it becomes EU member, since maintaining its full membership on this market would have to fulfill conditions like it did not quit From the EU.

Source: MTI

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