T
he International Regulatory Strategy Group (IRSG) said new thinking and targeted reforms were required after Britain leaves the European Union on Jan. 31. UK regulators will write its own financial rules instead of applying those fashioned by Brussels.
“Brexit does change the structure around regulation and we need to reflect that,” Mark Hoban, chair of the IRSG and a former UK financial services minister, told Reuters.
The Financial Conduct Authority (FCA) and the Bank of England are responsible for keeping markets and financial firms safe and stable.
But in a report on regulation after Brexit, the IRSG called for a secondary remit of ensuring that rules do not put the financial sector at a competitive disadvantage to New York, Frankfurt or other rival centres.
British regulators have resisted such calls, fearing it would increase pressure to ease rules.
Their predecessors had to “have regard” to Britain’s global financial role and were tarnished by a “light-touch” reputation after the financial crisis a decade ago.
