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FCA: EU regulation now a matter for parliament
The Financial Conduct Authority (FCA) says a Brexit will have no impact on regulation governed by EU legislation unless government and parliament choose to step in.
In a statement following news that the UK has voted to leave the European Union, the FCA said consumers’ rights and protections, including any derived from EU legislation, will also be unaffected.
One of the most recent major pieces of regulation in the mortgage market, the Mortgage Credit Directive, which was implemented on 21 March, is dictated by European rules.
The FCA said it will continue to monitor market developments and is in close contact with the Treasury, the Bank of England, other UK authorities and firms supervised by the UK regulator.
It added: “Much financial regulation currently applicable in the UK derives from EU legislation. This regulation will remain applicable until any changes are made, which will be a matter for government and parliament.
“Firms must continue to abide by their obligations under UK law, including those derived from EU law and continue with implementation plans for legislation that is still to come into effect.”
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The FCA added that longer-term impacts would be partly dependent on the relationship the UK forms with the EU in the future.
“We will work closely with the government as it confirms the arrangements for the UK’s future relationship with the EU,” it said.