On October 10, 2018 the Financial Conduct Authority (FCA) published a consultation for its first set of proposed changes to the FCA Handbook and EU derived binding technical standards (BTS). The FCA has considered and planned for a variety of outcomes to the Brexit negotiations, one of which being the UK leaving the EU on March 29, 2019 without an implementation period.
In this scenario, the FCA will amend the FCA Handbook in line with the Government’s legislative changes and to reflect the UK’s new position outside the EU to ensure that there is a functioning regulatory framework in place. In the same way, the FCA will be required to amend EU BTS, which are detailed EU rules, for which they will gain responsibility.
For the most part, the amendments proposed are straightforward changes that update references to:
UK law which relates to or refers to the EU;
EU institutions and concepts; and
the European Economic Area (EEA)
In a small number of cases the FCA has found more than one solution to resolve an issue. Where this is the case the FCA has set out its chosen proposal and welcomes feedback on the proposed approach.
The FCA does not propose wider policy changes and is not making other changes unrelated to Brexit to the FCA Handbook or to BTS.
The consultation closes on December 7, 2018.
(FCA CP18/28: Brexit: proposed changes to the Handbook and Binding Technical Standards – first consultation – 10.10.18)