The Financial Conduct Authority's (FCA) efforts to prepare for Brexit have been 'frustrated' by its European counterpart regulatory bodies, according to Treasury Select Committee chair Nicky Morgan.
In an exclusive interview with New Model Adviser®, the Conservative MP for Loughborough and former education secretary said that FCA chief executive Andrew Bailey had played a constructive role in readying financial services firms for 'a bumpy time'. But, she said the FCA had encountered resistance from European regulators who had been stopped from pre-empting political events by negotiators in Brussels.
'I think it would be fair to say there's been a frustration that when the UK has wanted to put in place practical, non-political solutions, their fellow regulators have not had the permission to do that, because I think from the European Brexit negotiators has come the message "no don't do that, that might pre-empt where we get to on the negotiations." So that has been quite a difference between EU and UK attitudes on this.'
Bailey wrote to Morgan on 29 November saying that co-operation between the FCA and European counterparts was 'important.'
'Supervisory cooperation between EU and UK authorities is important to enable us to meet our objectives through the continuous oversight of firms,' he said.
'The draft withdrawal provides for this co-operation to continue, and while the precise organisational arrangements remain to be settled, during the implementation period we hope that they will take the form of continuing current practice.'
Last week the government pulled its 'meaningful vote' on Brexit from parliament, which triggered a Conservative party no confidence motion in prime minister Theresa May.
You can watch Morgan's other reflections on Brexit, financial advice and the Financial Ombudsman Service above.
More from our interview with Nicky Morgan will be shown at the New Model Adviser® annual conference and awards in January.