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Financial Services Consumer Panel research on the implications of Brexit

The Financial Services Consumer Panel has published research and a position paper on the implications of Brexit for financial services consumers. The research looks at areas where consumers could benefit from the UK’s withdrawal from the European Union as well as protections which currently exist and may be lost. The Panel concludes that if the UK takes control of its financial services legislation, there is an excellent opportunity for the government and regulators to improve consumer protection regulation. In brief, the Panel identifies risks to consumers that could result from Brexit in the following areas:

  • possible economic downturn
  • impact on rights and lowering of standards in cross-border trading
  • supply problems
  • diversion of regulatory resources
  • lack of UK influence in EU rule-making

The Panel makes the following recommendations to regulators and the government:

  • the Brexit Select Committee should ensure it focuses on making the best of Brexit for individual consumers as well as businesses
  • the UK’s competitiveness objectives should be aligned with good consumer outcomes
  • in formulating its mission, the FCA should adhere to EU level legislation when consumer protections are stronger and cross-border regulation is more effective
  • details should be spelled out as soon as possible, in particular with regard to the length of the transition
  • the UK should continue to be a leader in formulating financial services legislation, especially where consumer protections are stronger at UK level

 

A full copy of the report can be found at https://www.fs-cp.org.uk/sites/default/files/brexit_paper_final_20170206.pdf

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