Much dialogue around Brexit’s impact on the City of London centered on what papers and politicians dubbed the ‘bonfire of rules’ – a phrase designed to capture the belief that onerous EU regulation was holding back UK financial sector performance.
These are complex issues, with opinion among financial services leaders on the ‘right’ style and level of regulation as varied as the views we see across the political spectrum.
If we were forced to generalize, many larger UK firms are hoping for post-Brexit regulatory stability balanced with reform in specific areas. Meanwhile new entrants are more likely to argue that existing regulation grandfathered in from the EU favors large incumbents and is anti-competitive.
Enter the UK Financial Services and Markets (FSM) Bill, characterized as an attempt to ignite said bonfire, but primarily designed to replace the hundreds of pieces of EU legislation that will be repealed now the UK has formally left the union.
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The Bill arrives during peak political turmoil, meaning financial services firms must navigate challenging uncertainty. Successful firms will be fortifying their risk management practices to protect themselves from playing offside.