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Financial Services

Question for Treasury

UIN HL14121, tabled on 27 February 2019

To ask Her Majesty's Government what assessment they have made of the assessment of the Chief Executive of the Financial Conduct Authority in evidence to the EU Financial Affairs Sub-Committee on 27 February that there may be market disruption in the event of a no-deal Brexit.

Answered on

13 March 2019

Leaving the EU with a deal remains the Government’s top priority. An Implementation Period is the most effective approach to ensuring a smooth and orderly exit from the EU. That is why it is so important that we are redoubling our efforts to reach a negotiated deal that Parliament can support.

The Government has taken action to minimise disruption for UK households and businesses regardless of the outcome, including by introducing temporary regimes for EEA firms operating in the UK.

As the FPC set out in its latest Financial Policy Summary, the core of the UK’s financial system is resilient to, and prepared for, the wide range of risks it could face, including a disorderly worst case Brexit. And while the FPC has noted that significant market volatility is to be expected in a disorderly Brexit, it has also noted that markets have proved able to function effectively through volatile periods.

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