BoE’s Woods warns towards post-Brexit weakening of financial institution guidelines By Reuters

0
1


#economy #economynews #tradingupdate #tradingeconomy

© Reuters. Bank of England Deputy Governor Sam Woods speaks at the ‘Future Forum 2017’ event in St George’s Hall, Liverpool

By Huw Jones

LONDON (Reuters) – Weakening rules for banks and insurers after Brexit would be “anathema”, but Britain could change its style of regulating to respond faster to change, Bank of England Deputy Governor Sam Woods said on Thursday.

“So as far as the stringency of financial regulation goes, we at the Bank have a clear view of what would make sense for the UK in a post-Brexit environment: we should keep it calibrated roughly where it is now and have no desire whatsoever to weaken it,” Woods said at a conference in Switzerland.

Britain’s finance ministry, parliamentary Treasury Select Committee and the Financial Conduct Authority have begun reviews of financial regulation after Brexit.

The bulk of rules applied in Britain come from the European Union, and some lawmakers say Brexit would allow Britain to revise its rules to keep London competitive as a global financial center.

Much will hinge on what form of access to the EU market Britain secures after it leaves the bloc.

Woods said it would be undesirable if Britain became a “rule-taker”, meaning it continued to apply EU rules in some form. The EU’s default system of financial-market access for foreign companies is based on their aligning with the bloc’s rules.

While Britain should not compromise on stringency, it could change the style of regulation, Woods said.

The EU favors detailed rule-making given the need to create a single rulebook across 28 countries, Woods said. In Britain, parliament has traditionally approved overarching changes, leaving the day-to-day application to regulators.

“Alternatively, we could adopt a hybrid approach which doesn’t replicate either of the pre-existing EU or British approaches,” he said. “Once you open this box, the possibilities are legion.”

Disclaimer: FX Forex Trading would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore FX Forex Trading doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

FX Forex Trading or anyone involved with FX Forex Trading will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

What You Think About This Topic? Leave Your COmment