On 27 February 2019, the FCA published updated information concerning Brexit.
Specific information is available for firms operating in the UK in five key sectors:
- banking and payments. The FCA states that UK firms should ensure that they have contingency plans for a range of scenarios, including the risk that the UK will no longer remain within the geographical scope of the Single Euro Payments Area schemes. UK firms must also ensure customer funds are handled appropriately. Banks conducting investment banking business should also consider the information on wholesale banks below;
- life insurance, pensions and retirement income;
- general insurance;
- retail investment. The retail investments sector is comprised of many relatively small UK firms servicing primarily UK-based customers. If the UK leaves the EU without a Withdrawal Agreement, UK firms’ ability to continue to service EEA-based customers (including UK expats) remains a concern. EEA-based customers (including UK expats) holding retail investment products serviced by UK providers could be affected if their UK provider cannot operate in the EEA after Brexit; and
- wholesale banks, markets and asset managers. If the UK leaves the EU without a Withdrawal Agreement, UK firms doing business in the EEA will need to consider if and on what basis it may be possible to continue after Brexit. Firms should consider the legal position carefully, seeking advice where appropriate. As firms prepare for Brexit, it is important that senior managers ensure execution is managed appropriately. Firms should discuss their future plans, including contingency plans and underlying assumptions, with the FCA.
UK firms should also refer to the FCA’s “Preparing your firm for Brexit” web page.