Following the shock result of Brexit, there are strong indications that both Scotland and Northern Island may be pushing to exit from the umbrella United Kingdom and pursue their individual sovereign identities. Both voted to stay in the European Union (EU) but it now appears from global analysis that they may be feeling ‘unprotected’ in the new United Kingdom outside the EU.
With the statement of intent to resign by PM David Cameron and the crash of the Pound Sterling, a quiver of shock is already running through UK’s commercial districts.
The Financial Conduct Authority (FCA), the financial regulatory body in the United Kingdom which operates independently of the UK government issued a statement Friday intended to calm the markets and bring stability and certainty. But the statement has done little to calm the shock which has already scraped some hairs in the UK stock market.
The FCA said only affirmative action by the UK government can change the financial rules, insisting that until that happens, it will business as usual.
Below is the FCA’s June 24, 2016 statement:
“On 23 June, the UK voted to leave the European Union (EU). This has significant implications for the UK.
“The FCA is in very close contact with the firms we supervise as well as the Treasury, the Bank of England and other UK authorities, and we are monitoring developments in the financial markets.
“Much financial regulation currently applicable in the UK derives from EU legislation. This regulation will remain applicable until any changes are made, which will be a matter for Government and Parliament.
“Firms must continue to abide by their obligations under UK law, including those derived from EU law and continue with implementation plans for legislation that is still to come into effect.
“Consumers’ rights and protections, including any derived from EU legislation, are unaffected by the result of the referendum and will remain unchanged unless and until the Government changes the applicable legislation.
“The longer term impacts of the decision to leave the EU on the overall regulatory framework for the UK will depend, in part, on the relationship that the UK seeks with the EU in the future. We will work closely with the Government as it confirms the arrangements for the UK’s future relationship with the EU”.
The UK is the second largest economy in the EU and its exit will definitely impact on the fortunes of the EU. But UK could be facing a backlash from other EU nations with some voicing their disappointment at the action of the UK to exit. Analysts fear UK citizens may face hostile treatment from the rest of the EU in the coming months and years.
