Preparing for Brexit
We continue to work with HM Treasury and other regulators to prepare for the UK’s withdrawal from the EU.
As part of this work, we have reviewed EU and domestic legislation we are responsible for to ensure there is a workable legal framework for financial regulation in the UK when the UK withdraws from the EU.
Potential withdrawal scenarios
If the UK leaves the EU with a withdrawal agreement in place, an implementation period will start on 30 March 2019 and is expected to last until 31 December 2020. During this time, the UK will continue to be treated as part of the EU’s single market in financial services, meaning that EU law will continue to apply in the UK. The UK will also continue to implement new EU law that comes into effect during the implementation period.
If the UK leaves the EU without a withdrawal agreement in place, HM Government is working to ensure there is a workable legal framework for financial regulation in the UK. As a part of this work, the Government has published a number of technical notices, guidance and Statutory Instruments (some of which have already been laid before parliament) to make the legal changes required.
What the PSR is doing
Many functions currently carried out at an EU level will need to be transferred to UK bodies. HM Treasury has tasked UK financial regulators with amending and maintaining EU technical standards to ensure that these still operate effectively when the UK leaves the EU. For the PSR, this applies to the regulatory technical standards regulation (RTS Regulation) made under Article (7) of the EU Interchange Fee Regulation. We have consulted on proposed legal changes to the RTS Regulation resulting from the UK leaving the EU.
We expect that much of the work we are doing, combined with the outcome of further negotiations, will contribute to the legislative framework needed for a smooth transition to the new regime.
The FCA, HM Treasury and the Bank of England have also published information about preparing for Brexit. You can also read Treasury’s information on ‘Banking insurance and other financial services if there’s no Brexit deal'.
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