ESMA Presses Brokers to Prepare for Brexit

With the United Kingdom’s transitional Brexit period coming to an end on 31st December 2020 the European Securities and Markets Authority (ESMA) issued an official statement to participants in financial markets to finalize their Brexit contingency plans.

The Memoranda of Understandings (MoUs), an agreed upon cooperation and exchange policy conducted with the [Financial Conduct Authority (FCA), will remain valid after that date and it will start applying as soon as the transitional period ends.

Companies whose activities will be impacted by Brexit are to implement their contingency plans by the end of 2020. They are also to limit the inevitable risks that will be caused by Brexit and they also have to provide their clients with appropriate information about which parts of their services have changed and/or will change.

In case your broker is one of those affected companies it is probably a good idea to call them and ask them what their plans are, unless you are not aware already.

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Doesn’t sound like a lot of time! I mean, brokers should be following the developments, but that doesn’t mean they’ve all prepared. This states “implementation” and not just planning. I hope they’re ready!

Hopefully it won’t be a cluster…

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That’s why I think it’s best for a trader working with such brokers to call them now rather than later. Find out what they are planning - and if they’re planning anything - and react accordingly on time.

Brokers under FCA regulation - will still be under FCA regulation.
Those under ESMA - will still retaing that.

Neither of these bodies are disrespeced in the markets and both have fairly high levels of compliance - so what do Gamblers have to be concerned about ?

Some brokers have bases and regulation on both sides. Some brokers have ended up suddenly leaving the UK due to Brexit. I imagine that was an unpleasant surprise for some of their clients.

Could be simply that the ESMA wants assurances that processes are still in place that maintain information sharing to the ESMA if they require information on any UK based entities.

It’s just the “EU” - chucking their weight about ! - London is more powerful than EU as a trading centre - What wiould “NYSE” say if the same question was asked ?

A great many EU banks and brokers have been rushing to establish “offices” in London in the last few months - Just a game theory move ! :roll_eyes:

The more so since “EU” Commissioners are revitalising the “Stamp duty” type tax on every transaction - WHereas London has no such motivation !

Perhaps. “Remember me when you leave. I’m right here. Are you listening to me?!”

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Thanks for the kitty heads up, hooman! :smiley:

Yes I think so.

Sometimes one gets the feeling “they” still think of us (UK) as “members” who need disciplining like wayward children.

Whereas we are - if you like "Children who are ready willing and able to leave home permanently - It would be nice if we can come “home” for the holidays sometimes and have nice chats over the phone or whatever

BUT If they insist on sulking and throwing tantrums - then we’ll just leave anyway - and deal with whatever we need to deal with going forward.

(I just hope ‘Boris’s boys’ understand that - as they seem to at the moment - and don’t go down the "deal at any price " route ! )

Personally I wouldn’t even bother approaching uk brokers - if you’re betting in the uk - with a uk broker - then uk rules will apply. UK rules are fine - and pretty much “the same” in any case.