08.24.2018

Brexit Contract Continuity Still Unresolved

08.24.2018
Shanny Basar

TheCityUK, the lobbying group, warned that lawmakers still need to urgently address the issue of contract continuity after Brexit as the UK government published preparation plans for leaving.

The UK government yesterday published its contingency plans for a number of sectors if the country leaves the European Union in March next year after failing to negotiate any deal.

Dominic Raab, Secretary of State for Exiting the European Union, gave an overview of the plans in a speech:

The plans included a paper on financial services:

TheCityUK, the lobbying group, responded to the plans :

Miles Celic, chief executive of TheCityUK, said in a statement: “Top of the list of pressing issues is the need to address the unresolved issue of contract continuity. Neither the industry nor the UK can fix this alone. This is a practical issue that impacts customers and clients. It is time for EU authorities to tackle it in that spirit.”

briefing on contract continuity is available on TheCityUK website.

The Investment Association, the trade body that represents UK fund managers, said:

Chris Cummings, chief executive of IA, said in a statement that the UK Financial Conduct Authority is ready to draw up bilateral regulatory cooperation agreements. He continued: “These are now urgently needed.”

On asset management Sean Tuffy, head of EMEA regulatory & market intelligence at Cit, noted:

The Association for Financial Markets in Europe added:

Simon Lewis, chief executive of the AFME, said in a statement: “The consequences of a no-deal Brexit scenario could mean prolonged disruption to the smooth functioning of Europe’s capital markets, which would affect investors, borrowers and savers across Europe and beyond. The financial services industry is keen to see both negotiating parties agree on a deal which locks in an agreement on a transition period and the future trading relationship in order to minimise the risks to financial stability.”

Lewis Goodall, political correspondent at Sky News, noted:

Goodall continued:

PIMFA, the wealth management and financial advice association, said in a statement:

“In response to the HM Government preparations for a ‘no deal’ scenario, PIMFA – the UK’s leading wealth management and financial advice association – reiterates the importance of keeping the interests of retail clients as a priority in the negotiations. PIMFA would like to see more detail as to how the government will address the risks posed to EEA clients under a “no Brexit deal” situation.

In our opinion, a main priority for the government should be to negotiate a deal with the EU that will provide necessary certainty to the private client investment, brokerage and advice sector in financial services, as well as the private clients and their families, whose savings and investments of approximately £1.5 trillion they manage. Minimising costs is a key factor.”

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