ISLA: Brexit will leave UK in legal limbo
06 October 2016 London
Image: Shutterstock
A 'hard' Brexit will leave UK-based securities lending businesses in a regulatory no man's land, according to speakers at the International Â鶹´«Ã½ Lending Association's Post-Trade Conference in London.
Delegates heard that regulatory initiatives such as the Â鶹´«Ã½ Finance Transactions Regulation and UCITS have no existing third-party contingencies to speak of, meaning the UK would be entirely detached from their oversight once Brexit is finalised.
The UK government has signalled its intention to formally begin exiting the EU in March 2017, meaning the union will lose one of its founding members by the spring of 2019.
This creates problems for UK entities looking to engage in the EU lending market, according to speakers.
The exact details of the terms on which the UK will begin the detach itself from the EU are yet to be confirmed but panellists at the conference outlined several reasons why some of the remaining members will seek a deal that clearly puts the UK in a disadvantaged position post-Brexit.
One speaker explained that, due to a number of other member states also acknowledging a high level of public dissatisfaction with the EU, Brexit would have to act as a case study that would go some way to dissuading other states from attempting to leave the single market.
Delegates heard that regulatory initiatives such as the Â鶹´«Ã½ Finance Transactions Regulation and UCITS have no existing third-party contingencies to speak of, meaning the UK would be entirely detached from their oversight once Brexit is finalised.
The UK government has signalled its intention to formally begin exiting the EU in March 2017, meaning the union will lose one of its founding members by the spring of 2019.
This creates problems for UK entities looking to engage in the EU lending market, according to speakers.
The exact details of the terms on which the UK will begin the detach itself from the EU are yet to be confirmed but panellists at the conference outlined several reasons why some of the remaining members will seek a deal that clearly puts the UK in a disadvantaged position post-Brexit.
One speaker explained that, due to a number of other member states also acknowledging a high level of public dissatisfaction with the EU, Brexit would have to act as a case study that would go some way to dissuading other states from attempting to leave the single market.
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