UK’s FCA published contingency Brexit plans

[mlawson71]

In two papers, published earlier this week, the UK’s Financial Conduct Authority (FCA) has outlined contingency plans in case Britain leaves the European Union without a deal next spring.

The plans reveal that in a worst case scenario, where on March 29th UK leaves EU without a deal, the FCA will grant temporary permissions to all EU and European Economic Area(EEA) regulated companies to continue to operate in the UK for 2 more months, in which those companies will have the opportunity to talk with FCA and get FCA licenses.

 

[JSOP]

OMG!! Britain exiting from EU without a deal is like getting divorced without any agreement, no spousal support, no child support, no nothing but all the debts and that's exactly what EU wants. I hope Britain is not thinking of staying within EU just because it can't get a deal betraying the wishes of more than 50% of British citizen. Britain needs a better "lawyer" representing it, this Theresa May is crap!! Her heart is not in it for negotiating a fair deal for Britain; she was not a firm Brexit supporter to start with. I don't believe there is nothing that Britain has that EU doesn't need or want and Britain has nothing it can use as bargaining chips to negotiate for a better deal.

 

[mlawson71]

The no deal option sounds so wild to me, that can't possibly end well.

 

[JSOP]

The no deal option sounds so wild to me, that can't possibly end well.

I do not know why UK is so nice to the EU companies when EU is being an a** playing hardball against UK in the Brexit negotiations. Everybody knows UK's FCA along with its FSCS is the strongest and the most trustworthy financial regulatory bodies and financial compensation schemes. All of the other EU companies especially those forex brokers are all relying on the three letters of "FCA" to sell business, without it, no one would ever want to even look at them. Why UK is not using this as bargaining chips in their Brexit negotiation instead still granting this 2-month extension to the UK companies after UK's no-deal Brexit is beyond my comprehension. I mean if UK's exiting from EU without a deal next March, that's EU's fault, WHY should FCA bend backwards to still accommodate EU's companies?

Unless I am missing something, if I were UK, I would do the opposite. If UK is exiting from EU without a deal next March, all the EU companies that are currently registered with FCA will see their registration immediately cease to exist and any UK clients who still choose to do business with these EU companies will do in their own peril as these EU companies will no longer be overseen or regulated by UK FCA and if anything happens, the clients' funds would not be protected and compensated by UK's FSCS. If those EU companies want to continue their FCA registration in all scenarios, they will have to negotiate with FCA now for any contingency plans in case of no-deal Brexit not wait until after. If UK is able to get a deal during exiting from EU, then their contingency plan will not be used and instead will follow the deal but once UK exists, it's too late. If there is no deal, there is no deal. If UK's is not even able to get a deal from EU, why should FCA strike a deal with EU companies?