On 18 April 2019, the FCA published a Dear CEO letter which explains its view of the key harms that brokerage firms operating in wholesale financial markets pose to their clients and markets. The letter also sets out the FCA’s strategy to mitigate the drivers of those harms.
In terms of Brexit, the letter states: “We expect the senior managers of firms to take responsibility for ensuring that its plan will allow the firm to act in the best interest of clients, and in line with applicable regulatory requirements, in all possible Brexit scenarios. Firms should keep us closely informed of those plans, including their communications with clients.”
The FCA states that it will be exploring the issues in their letter in its engagement with large and small brokerage firms throughout this year and next.