On Tuesday, the Financial Conduct Authority, the markets watchdog of the United Kingdom, urged his counterparts in the European Union to work jointly in order to address the risks that will result from the upcoming Brexit. He said that the unilateral action that is imposed by the United Kingdom would only present second-best measures.
Some regulators in the United Kingdom are worried over the possible disruption to financial stability unless some sort of mechanisms are in place to make sure that insurance policies and cross-border derivatives contracts will remain enforceable even after the United Kingdom leaves the European Union in March 2019.
Andrew Bailey, the Chief Executive of the Financial Conduct Authority, said during the City Week conference: “Now is the time for the UK and EU authorities to come together and work on the solutions to reduce the risks to financial stability that Brexit could pose.”
While it was essential for the United Kingdom to take some unilateral actions in order to address some of the risks that will result from the upcoming Brexit to the markets, Bailey said that this is a “distinctly second best solution” that is suited for everyone.
He added: “Let’s get on with it please.”