The last few days have certainly been momentous for the UK and it seems that nobody really knows what’s going to happen next. It is clear, however, that the country’s departure from the European Union will have an impact on everyone’s finances.
The financial services industry has already been one of the first to see the effects, with dramatic falls in share prices as the markets reacted to the outcome of the referendum. Providers, fund groups and banks have all taken a hit. As with any major change, there will be winners and losers so who will they be? Our colleagues on Money Marketing and Fund Strategy provide in-depth round ups. Tax is a major concern, obviously, and some of the main issues are set out on Accounting Web.
What is the Financial Conduct Authority saying?
Much of the financial regulation currently applicable in the UK comes from EU regulation and this will remain applicable until any changes are made (by the government and Parliament). Firms must therefore continue to abide by their obligations under UK law, including those derived from EU law and continue with implementation plans for legislation that is still to come into effect. Consumers’ rights and protection are unchanged by the referendum. Of course, uncertainty is flavour of the month (or perhaps longer) and the longer term impacts of leaving the EU on the overall regulatory framework will depend on the future relationship the UK has with the EU.
What is the Governor of the Bank of England (BoE) saying?
Mark Carney has said that we can expect an inevitable period of uncertainty and adjustments following the referendum result, but there will be no inital change in the way our people can travel, and in the way our goods and services can be sold. He has also said that it will take time for the UK to establish new relationships with Europe and the rest of the world, which will result in some market and economic volatility. Mr Carney has sought to reassure the public that the BoE is well-prepared for this through contingency planning, beginning with ensuring that the core of the UK’s financial system is well-capitalised, liquid and strong.
What is the government saying?
Not an awful lot. But this is one thing the British people agree on whichever way they voted: they need to say something soon.
On an interesting note Marketing Week provides an in-depth look at the brand effectiveness of the campaigns.