Britain decouples from EU with delay to bank and investment rules

Britain decouples from EU with delay to bank and investment rules

Reuters  | Nov 16, 2020 13:35

Britain decouples from EU with delay to bank and investment rules

By Huw Jones

LONDON (Reuters) - New capital rules for banks and investment firms will be implemented at the start of 2022, six months later than originally indicated to give industry more time to prepare, the British authorities said on Monday.

The deadline is six months after the European Union's June 2021 date for implementing its versions of the rules, showing how Britain is decoupling from EU financial regulations as post-Brexit transition arrangements finish at the end of 2020.

The rules comprise Britain's Investment Firms Prudential (LON:PRU) Regime, which covers capital requirements for investment firms, and some changes to capital requirements agreed globally by the Basel Committee after the financial crisis a decade ago.

"We have decided to target an implementation date of 1 January 2022 for these two regimes," the Bank of England, Financial Conduct Authority and Britain's finance ministry said in a joint statement.

Britain previously indicated it would introduce the bank capital rules at the same time as the EU, but had not said when it would introduce the investment firm capital rules.

The authorities said the decision to delay was a response to feedback from the industry, which had raised "concerns about the general volume of regulatory reform in 2021."

The delay will be welcomed by investment firms but it pushes back the shift to a simpler capital regime for British companies that EU rivals will benefit from six months earlier, said Ash Saluja, a financial services lawyer at CMS.

"This is a significant example of post-Brexit divergence between the UK and EU regulatory regimes," Saluja said.

The Basel Committee, a global body of banking supervisors that includes the Bank of England, said in March implementing the final leg of its capital rules could be delayed to January 2023. UK regulators have said they will apply this new deadline.

© Reuters. Canary Wharf business district in London

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Polski Português (Portugal) Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.