The FCA has contacted several of Britain’s asset managers requesting detailed information about their Brexit contingency plans as concern mounts about the impact of the EU divorce process on the City of London.
The FCA sent letters containing questions about the effect of Brexit on asset managers’ business models, including whether or not UK-based companies are planning to relocate staff or operations to the EU.
Asset managers have also been asked to explain whether their Brexit contingency plans will affect their capital base or IT systems and whether they have applied for new licences from foreign regulators.
“It is important for us as supervisors to understand the plans that our regulated firms have regarding Brexit,” said an FCA spokesperson.
The letter comes at a pivotal moment for the UK’s investment industry, with many asset managers divided on how best to prepare for Britain’s departure from the EU before formal negotiations over the terms of Brexit between Brussels and Westminster begin.
See full article here