In a recent speech, Andrew Bailey, the chief executive of the FCA, provided an update on the FCA’s state of preparation for Brexit, and in particular for a no-deal, no-transition Brexit scenario.
However, while Mr Bailey noted the progress that had been made generally, he identified seven areas that the FCA considers require particular attention, whether at a UK or an EU level:
- the Share Trading Obligation,
- the Derivatives Trading Obligation,
- clearing,
- uncleared derivatives,
- data exchange,
- progress on contract repapering, and
- retail financial services preparation.
These issues arise from and relate to a range of underlying factors; consequently, Mr Bailey indicated, the FCA will “use forbearance generously but appropriately, to maintain market integrity and protect consumers and market uses,” and he reiterated the FCA’s commitment to open markets, subject to there being no undermining of market integrity.