FCA on Brexit: It is going to be tough, it might be a bit more expensive…

Maria Nikolova

Chris Woolard, Executive Director of Strategy and Competition, Financial Conduct Authority, has given evidence before the EU Justice Sub-Committee, elaborating on issues like budget and enforcement.

london

The UK departure from the European Union is likely to be a key topic for years to come, with the financial services sector heavily affected by this process. Some interesting comments in this respect have been made by Chris Woolard, Executive Director of Strategy and Competition, Financial Conduct Authority, who on October 10, 2017, gave evidence before the EU Justice Sub-Committee.

The comments (the full recording may be viewed on UK Parliament TV) were made as the Sub-Committee continues with its inquiry into Brexit: consumer protection rights.

Asked about any worries about enforcement, Mr Woolard replied that in terms of the UK’s own enforcement, it’s much of “business as usual”. However, in a broader context, the situation is mixed.

“If we look across the full range of enforcement, some of that is underpinned by European level arrangements, particularly around competition law, but an awful lot of it is already dealt with essentially bilaterally between ourselves and other regulators operating in Europe or operating elsewhere in the world, so it’s a bit of a mixed picture”, he said.

Mr Woolard made a specific clarification about ESMA and its CFD regulations. The FCA had delayed making the new CFD rules final, attributing its decision to a statement by the European Securities and Markets Authority (ESMA) on its consideration of product intervention measures under Article 40 of the Markets in Financial Instruments Regulation (MiFIR).

On October 10th, Mr Woolard said:

“A lot of the arrangements that are in place at the moment do not rely ultimately on European underpinning. But there are certain places. So, for example, if we look at ESMA, where approaches are being discussed at the moment around things like contracts for difference, where we do see some significant issues in the market, and where, were there to be a European level action in that space, we would absolutely want that to be a part of the UK regime in a post-Brexit scenario”.

Apparently, this is a piece of legislation that the UK authorities would like to onshore as the Brexit process progresses.

Concerning the financial, budgetary aspect of this transition, Mr Woolard faced the question of whether the FCA is resourced enough to the job of dealing robustly with the emerging challenges in this process of leaving the European Union.

“This is a very very significant challenge for us as an organization. We need to scale up significantly the amount of resource we are spending on Brexit”, Mr Woolard said.

“The short version of this is: It is going to be tough, it might be a bit more expensive…” – Chris Woolard, Executive Director of Strategy and Competition, FCA.

Read this next

Executive Moves

CMC Markets taps Finalto’s Julia Free to head UK compliance

CMC Markets PLC (LSE:CMCX) has onboarded Julia Free as its newest head of UK compliance as part of a broader organizational reshuffling at the UK’s biggest spread better.

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

Technology

TNS connects to Tel Aviv Stock Exchange (TASE) as market data vendor

“This latest exchange connection allows TNS to provide access to approved recipients, including exchange members and market data vendors. This project includes market data for TASE’s equities and increases the number of market data feeds we now offer globally.”

Executive Moves

Cowen Digital taps ex-Blockchain.com Taylor S. Cable to lead Europe and Asia operation

“Cowen Digital is a pioneer in delivering institutional grade access to the digital asset ecosystem and I am very excited to join the team at this pivotal time to grow our presence in Europe and Asia.”

Industry News

ASIC sues American Express Australia for lack of TMD on credit cards

“ASIC has now taken multiple actions under the design and distribution regime, including issuing over 20 interim stop orders. This regime turned a new page in the regulation of financial products in Australia and is intended to deliver better outcomes for consumers. It is a priority for ASIC to maximize these increased protections and see the long-term benefits of the DDO regime realized.”

<