U.K.'s Largest Asset Managers Questioned on Brexit Plans by FCA

  • Regulator sent questions to about 20 asset managers on plans
  • Firms asked about foreign license applications, IT systems

The U.K. Financial Conduct Authority wrote to about 20 of the country’s largest asset managers seeking information on their Brexit plans, as the regulator looks to shore-up the industry ahead of Britain’s divorce from the European Union.

The letter, which was sent in recent weeks, contained a list of questions for firms about plans to relocate staff or apply for foreign licenses in the wake of Brexit, as well as their IT systems and capital reserves. The questions form part of the FCA’s general supervision work on Brexit.

"It is important for us as supervisors to understand the plans that our regulated firms have regarding Brexit," the FCA said in an emailed statement Wednesday. "To help firms prepare for these conversations, we shared the details of the questions we would be asking. This was not a formal data request and was not asking firms to undertake any further work."

Advising the government on Brexit was one of the FCA’s priorities outlined in its April business plan. The regulator has allocated 2.5 million pounds ($3.2 million) for Brexit costs over the next year. The amount is relatively small because the agency is trying to absorb as much as it can through its normal budget.

The Financial Times first reported the letters Wednesday.

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