The Financial Conduct Authority (FCA) has revealed it is preparing for all Brexit eventualities, including a 'no deal' scenario and the financial risks that come with that.
Speaking to delegates at a Bloomberg and CityUK event on Thursday morning, FCA executive director of international Nausicaa Delfas explained the risks of a so-called ‘cliff-edge' Brexit. These ‘cliff-edge' risks primarily relate to insurance contracts and derivatives, she explained, and could affect 10 million UK policyholders, 38 million policyholders in the European Economic Area (EEA), as well as around a quarter of derivative contracts, which are worth some £26trn. Delfas said if contractual certainty between the UK and EU were not achieved, insurers might not be obligated to pay ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
