Britain’s Financial Conduct Authority (FCA) has said it is continuing to make contingency plans for all Brexit scenarios, including a “no-deal” whereby the UK crashes out of the EU.
The financial regulator said that a no-deal scenario could leave insurers unable to pay out claims on certain policies, and warned that because negotiations are still very much continuing the FCA “must prepare for all scenarios”.
In a speech earlier today, the FCA’s international director Nausicaa Delfas said that “It is of course for the government to negotiate – but we have been clear about thesort of arrangements on financial services that we believe are possible, and desirable, to maximise market access and benefits to consumers in the UK and EU.
“These include the five principles of: cross border market access; consistent global standards to support global markets; co-operation between regulatory authorities; influence over standards; and the opportunity to recruit and maintain a skilled workforce.”
While Delfas said that the transition period until the end of December 2020 “is a good thing for both sides”, she cautioned that “cliff-edge” risks still exist.