The Financial Conduct Authority (FCA) has announced that it will delay rule making on some of its ongoing work due to the 'scale of handbook changes needed for Brexit'.
These initiatives will include the regulator's work on the remit of Independent Governance Committees (IGCs) and illiquid assets, the latter of which was initiated following a series of fund suspensions and pricing alterations among property fund investors following the Brexit vote.
In a statement released yesterday, the FCA said before the date of the UK's departure from the EU, its rule making outside the context of Brexit would focus only on core priorities set out in its business plan.
These include the implementation of the Senior Managers and Certification Regime (SM&CR) and the Asset Management Market Study (AMMS).
The FCA will be tasked with amending and maintaining EU binding technical standards, which sit behind EU regulations and directives, providing technical detail on how those requirements must be met.
The regulator will consult on these changes in the Autumn, subject to the Treasury's timelines for statutory instruments, expected to be laid out in Parliament later this year.
It also intends to consult on the rules which will apply to firms in the temporary permissions regime, announced by the government in December.
The implementation period is intended to be in place from the leaving date of 29 March 2019 until the end of 2020, during which time EU law would remain applicable.
On its approach to the legal changes, the FCA stated: 'The Treasury has set out that its approach to onshoring the EU acquis will not rely on any new, specific arrangements being in place between the UK and the EU after exit and that, as a general principle, EU member states will be treated as third (non-EU) countries – although there are instances where the Treasury would deviate from this general approach, including to provide for a smooth transition.
'We are taking the same approach. This will ensure that the requirements we are responsible for are consistent with the wider legislative framework.'