FCA announces cut backs in operations to focus on Brexit.

London

According to the UK Financial Conduct Authority’s annual business plan, published on the 9th of April, it announced it had to make “difficult and challenging decisions about our priority activities across all business areas that are not related to work on EU withdrawal, including limiting the number of new initiatives we’ve taken on”. The FCA said that “This year’s Business Plan priorities reflect the high level of resource we need to dedicate to EU Withdrawal”.

Andrew Bailey, the FCA’s Chief Executive said his team were well advanced on “the work that's necessary to put all the withdrawal legislation into place and particularly to make our rulebook fit and be operational on the first day of Brexit.” He also commented that a very large amount of work was required “to ensure that what I tend to call the so- called 'cliff edge' risks that could materialise in a transition, that we're well planned with and well advanced with actions that will mitigate those. That requires a lot of co-ordination with regulators in the European Union”.

The UK regulator said it would need to spend £16m on top of its ordinary operating budget to prepare for Brexit over the next 12 months — more than six times higher than last year. It’s reported most of the extra money will be paid by the groups most affected by withdrawal and companies such as credit-rating agencies, which will now come under the FCA’s remit after Brexit.

The FCA said a further £14m will come from “reprioritising, delaying or reducing non-critical activity” in its regular budget.

Dr. Ray NultyComment