Concern mounts over a no-deal Brexit
The UK financial establishment says it can cope if the UK crashes out of the EU, but behind the scenes panic seems close.
Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), was channelling the Dunkirk spirit at the Mansion House last night – all self-deprecation, bad jokes, plucky little British chap – as he reported on the UK market regulator’s preparations for a range of Brexit outcomes, from an implementation period that smooths transition to a hard and sudden exit.
|Andrew Bailey, FCA
“I was amused the other day when someone asked in Parliament if the FCA had adequate resources to deal with this,” bantered Bailey. “It was the same day that we put out 900 pages of consultation documents on Brexit preparations for no deal, which is good going in a single day even by our standards.”
So, he thinks we, or at least the FCA, can handle it.
But he did, once again, press the urgent need for the FCA’s EU counterparts to put in place Memorandums of Understanding (MoUs) to support cross-border supervision of firms and markets and continuation of clearing, pointing out that the FCA is a significant sharer of cross-border data and passes on around 70% of transaction reports it receives to counterparts across the EU.
Bailey said: “This technical, regulator to regulator coordination is essential to minimize disruption in a no-deal situation.”