FCA shut out of Brexit talks with EU regulators

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FCA chief executive Andrew Bailey says the regulator has been excluded from certain discussions on Brexit with its European counterparts.

In an interview with the Financial Times, Bailey says the FCA has been shut out from talks with the European Securities and Markets Authority on issues such as the future relationship between the UK and the EU, as well as the European regulator’s expectations of UK firms looking to have a presence in the EU.

A similar relationship is said to exist between the Prudential Regulation Authority and the European Banking Authority.

Bailey told the newspaper: “There are times when they want to discuss Brexit without us being present, and there are issues they want to discuss amongst themselves, so we have a bit of shuttling in and then shuttling out.”

He says parliament may not be prepared for the technical work involved in transposing EU rules into UK law. The FCA has hired 15 extra lawyers to help with this work.

He says: “The European parliament takes a bigger scrutinising role… and that’s not what the Westminster parliament is particularly in the business of doing. “It’s come back a bit recently with things like ringfencing and the senior managers’ regime, but they’re the exception, not the rule, for Westminster.”