What’s possibly going to happen next?
Once Article 50 of the Lisbon Treaty has been enacted, the UK will have given formal notice of its decision to leave the European Union. Once this has taken place, the UK will have two years to negotiate new trade deals with the EU (note: this will not be on a country by country basis, but will be one single deal with the remaining 27 counties). With the potential for trade quotas and tariffs and the possible removal of the City of London’s EU “passports” that allows them to sell services to the rest of the EU, the effect on businesses is currently unknown.
Will I have to change my reporting?
Much of the financial regulation currently applicable to the UK is derived from EU legislation. This means firms must continue to abide by their current obligations and continue with implementation of plans for legislation that is still to come into effect.
The longer term impacts of the UK’s decision to leave the EU on the regulatory framework will depend, in part, on the relationship that the UK will have with the EU in the future. The Financial Conduct Authority has given reassurance that it is monitoring the ongoing situation.
What should I do?
We suggest that whatever your message, it needs to be honest, open and transparent. As always, you can trust that we will keep you informed of any changes.