What will UK financial services regulation look like post-Brexit? Will it be a rule-taker or a rule maker?
What will UK financial services regulation look like post-Brexit?
2nd October - To some extent this will be determined by the outcome of current political negotiations. At present, it seems likely that there will be considerable scope for the UK regulatory regime to diverge from EU financial services legislation, but there remains a possibility that an agreement might be reached on the future UK-EU relationship that constrains divergence to at least some degree. Other factors will also be at play over the short, medium and long-term.
The wider regulatory landscape continues to evolve. Brexit is influencing the EU legislative and supervisory dynamic. At the global level there is a combination of emergency measures to mitigate the impact of COVID-19; reviews of the post-crisis regulatory reforms that have already been implemented; unfinished business as other parts of the regulatory reform agenda near completion or implementation; and moves into new or more intensive areas of regulation such as ESG, fintech, retail conduct, and interest and exchange rate benchmarks. Much of this is happening at different speeds and in different ways across sectors, as for example with the extension of financial stability concerns from the banking sector to the insurance and investment sectors.
This paper considers how the interplay of external and domestic drivers might shape UK financial services regulation, post the pandemic.