file-o file-word file-excel file-powerpoint file-image file-archive file-audio file-movie file-code file-openoffice file-css menu googleplus facebook instagram twitter feed youtube vimeo2 lanyrd flickr picassa deviantart github wordpress blogger tumblr yahoo soundcloud skype linkedin lastfm delicious stumbleupon stackoverflow pinterest foursquare cross arrow-left arrow-down arrow-up arrow-right arrow-left2 arrow-down2 arrow-up2 arrow-right2 arrow-left3 arrow-down3 arrow-up3 arrow-right3 search

You are here

FIA comments on Brexit transitional arrangements

FIA comments on Brexit transitional arrangements

1 February 2017 9:45pm EST

FIA submitted comments to the UK Parliament’s Treasury Select Committee consultation on transitional arrangements in relation to Brexit.

The letter noted that "significant market disruption, financial instability and regulatory uncertainty may result from a failure by the UK and the EU to deliver a smooth transition through the Brexit process," and urged policymakers to agree on transition terms in the first few weeks of negotiation following the trigger of Article 50. 

FIA detailed the following key priorities:

  • “Equivalence” for the UK and its market infrastructure. FIA urged policymakers to complete the process prior to the end of the two-year Article 50 process, failing which employ a grandfathering regime.
  • Transitional arrangements.  In order to avoid a “cliff-edge” and to give the global industry sufficient time to transition into the new regulatory paradigm, transition arrangements are necessary.
  • Confirmation within the first few weeks of negotiation that transitional arrangements will be part of the deal.  The end of 2017 will be too late, as firms will already be executing their contingency plans, based on worst-case scenario planning.

Additionally, FIA emphasized desired outcomes from the process, including:

  • Continued access to market infrastructure and clients.
  • Minimizing disruption, to protect the integrity of global markets and mitigate systemic risk.
  • Avoiding policy determinations that fragment markets, collateral and liquidity.

The full letter is available here. 

Attachments

Icon
2017-01-31_FIA_Treasury_Select_Committee_consultation_Brexit.pdf (444.31 KB)

Close

Close

Menu

Menu

Back to FIA