The post-Brexit Handbook: a collective opportunity

In view of the recent passage of the Financial Services and Markets Act 2023, Greg Sachrajda, Co-Director of the FCA’s Cross-Cutting Policy and Strategy at Supervision, Policy, and Competition division, has published a press statement to inform of the FCA’s approach to transpose the objectives and mandates of the Act into changes to the FCA Handbook. The Director thereby notes the following:
The Act presents a significant opportunity to refine and expand financial regulations in the UK outside the EU. Specifically, the Act allows for the repeal of retained EU legislation (REUL) to create new rules (better) suitable for the UK financial market and introduces a secondary objective on international competitiveness and growth, enhanced accountability, and a duty to consult on cost-benefit analyses in relation to new regulations.
#### The FCA’s approach towards new regulation
It is the FCA’s and the government’s intention to retain those aspects of EU law that have proven to work well. Accordingly, changes will only be made where necessary taking into consideration the pace at which firms and market participants can adapt to new rules. With respect to regulatory changes that fall under the remit of the Financial Conduct Authority, the Director states that any upcoming modifications to the FCA Handbook will be implemented in accordance with the following key principles (as quoted), thereby reducing regulatory burdens wherever possible and appropriate:
– bringing together regulatory provisions so that the Handbook becomes a ‚one-stop shop‘
– using the existing structures in the Handbook where possible, and only creating new sourcebooks where necessary
– relying on existing requirements as much as possible
– considering outcomes-based regulation, where appropriate
– seeking to reduce complexity by drafting in our Handbook format and style where we can, and aiming to align standards addressing similar issues across files where possible
The key goal, so the Director, is to have clear, simple, and consistent rules in the Handbook.
#### Engagement of stakeholders to form new regulation
The FCA is highly committed to engage with stakeholders, particularly financial services firms and consumers, in order to seek their input and feedback on proposed changes. Such engagement will be via formal and informal channels and the regulator strongly encourages financial market participants and consumers to participate in this rule forming process and to share their views to influence the future of financial services regulation in the country. After all, final rule decisions should benefit ALL stakeholders and the UK financial market as a whole.