Now that the unthinkable has happened and we see 31-year lows on the British Pound and global markets collapsing. There are now so many unanswered questions out there. Will Scotland now vote to leave the UK? Will other European countries also look to hold referendums on exiting the EU? Will the results of the post Brexit result in a global recession?
There are also many questions on the future of the regulatory structure which existed between the UK and the EU. International Banks and Brokers have already indicated that they are looking to relocate staff and offices from London. This also might impact the future of Forex Brokers in the UK. The FCA has already stated that for the time being the status quo will remain. Forex Brokers are under the same rules and guidelines for the time being. The statement also indicated that the FCA will be working closely with the government and that changes are most likely on the way.
One of the most accurate descriptions of the Brexit is a divorce between the UK and the EU. Both sides will now need to negotiate the terms of this divorce. Much of the FCA regulatory structure is based on EU law. It will depend on the response on the part of the EU and how they want to treat the FCA going forward. One of the most significant questions that remain for FCA Brokers is will they stay in MiFID (Markets in Financial Instruments Directive) post-Brexit. This what allows the FCA to passport regulation to EU countries.
It is important to remember that whatever the outcome is of the divorce it could take years to finalize the unwinding of the UK out of the European Union.