Backers of Brexit want new financial rules to be not overly burdensome. The FCA and its sister concern the Prudential Regulation Authority at the Bank of England clearly have their task cut out.
According to a top UK regulator, investors should not see Brexit as a trigger for Britain to “race to the bottom” in regulatory standards.
“The FCA does not see the UK’s withdrawal from the European Union as an opportunity to join a race to the bottom in regulatory standards – quite the contrary,” said Charles Randell, chairman of the Financial Conduct Authority, in an industry event.
Many UK lawmakers are of the opinion, the FCA and the Prudential Regulation Authority, FCA’s sister regulator, at the Bank of England, should have a formal objective of maintaining competitiveness; this means that after Brexit, new financial rules should not be overly burdensome.
This will mean some very difficult trade-offs will have to be made with existing objectives, said Randell.
“How much loss of competition should we tolerate to ensure that a sector is competitive? How much loss of consumer protection? How much loss of market integrity? I believe that if we deliver our existing statutory objectives of making our markets work well, consumer protection, competition and market integrity, then there should be nothing to stop the firms we regulate from making money and growing in global markets,” said Randell.