Brexit and MiFID II
The UK’s decision to leave the European Union will likely have long-term impacts on the UK regulatory environment.
In the short-term, the existing regulatory structure will remain in place. The most rapid possible exit for the UK from the EU would be two years after the invocation of EU Article 50 (which is not likely until the fall of 2016). Under other scenarios, the UK’s exit may take a longer period of time to resolve.
MiFID II’s starting date of January 2018 falls within the (optimistic) two year window. In order to secure access to the European market for asset management, UK regulators may opt to follow European rules regardless.
FCA Statement - Much financial regulation currently applicable in the UK derives from EU legislation. This regulation will remain applicable until any changes are made, which will be a matter for Government and Parliament.
Firms must continue to abide by their obligations under UK law, including those derived from EU law and continue with implementation plans for legislation that is still to come into effect.
Investment Association Statement - Today the UK remains a member of the EU and the rules and regulations governing asset management remain unchanged, and the protections that were in place for clients yesterday remain in place today.