FCA takes ‘pragmatic’ approach to Mifid reports post-Brexit

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Oct 17, 2019

The FCA says it will take a “proportionate and pragmatic” approach to reporting supervision on Brexit day should the UK leave the EU without a deal on 31 October.

It has urged firms to take reasonable steps to be prepared to comply with post-exit Mifid transactions and European market infrastructure regulation trade reporting requirements.

“Leaving the EU during the working week could pose operational challenges for firms,” the regulator acknowledges.

FCA international executive director Nausicaa Delfas says: “The FCA has been preparing to ensure UK financial services are well placed if the UK leaves without a deal. Today, we have set out steps certain firms need to take – it is important that firms are as prepared as possible if there is a no-deal exit, and that they are aware of what they need to do.”

The regulator describes Mifid transaction reporting as a “crucial part” of its approach to market oversight.

It says firms that are not able to comply fully with the regime at the time of the UK’s withdrawal from the EU will need to be able to back-report missing, incomplete or inaccurate transactions.

“This should be competed as soon as possible after 31 October 2019,” the FCA warns.

“These increasing risks meet a financial system that is much more resilient than it was before the financial crisis. However, the long period of sustained global growth and rising asset prices may have weakened the incentives to take precautions against unforeseen events”.

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