Lords Committee turns to academics for opinion on post-Brexit financial supervision

Maria Nikolova

The EU Financial Affairs Sub-Committee will hear evidence on how financial regulation and supervision can evolve following Brexit in order to ensure financial stability and preserve market access.

The UK Parliament has turned to academics for their opinion on how financial supervision will change following Brexit. The EU Financial Affairs Sub-Committee is scheduled to hear Eilís Ferran, Professor of Company and Securities Law, University of Cambridge, and Niamh Moloney, Professor of Law, London School of Economics, with the hearing scheduled for Wednesday, September 13, 2017.

The possible topics of discussion cover the impact Brexit might have on the direction of EU financial governance, the role played by the European Supervisory Authorities (ESAs) in shaping the EU’s financial regulation and how the UK might maintain its influence on the process. Other possible areas of discussion include the main legal obstacles to an agreement on financial services, the options for a transitional arrangement covering financial services, and the regulatory position of FinTech.

The EU Financial Affairs Sub-Committee launched the inquiry into the future of financial regulation and supervision following Brexit in July this year. The focus of the inquiry is how financial regulation and supervision can evolve following Brexit so that financial stability is ensured. The Lords Committee is also examining how to maintain some other form of close relationship between the UK and EU regulatory regimes in order to preserve market access. The inquiry will encompass an assessment of not only the body of regulation, but also the institutional structures that support it.

Brexit, of course, is one of the priority matters for all UK institutions, including financial regulators. Recently, the Financial Conduct Authority has published the results of a survey of companies it regulates. Only 14% of respondents said they feel that the FCA is communicating effectively with them on the process of preparing to exit the European Union.

When firms were asked what they consider the FCA’s objectives should be during this process, the most common responses were to “minimise upheaval/ disruption for UK firms”, and to “provide clear guidance about new regulation/ changes to regulation”.

“Protecting consumers” and “protecting the financial industry” did not make it to the top three responses.

Source: FCA.

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”