FCA chief in ‘transition’ warning to Westminster

The head of Britain’s finan‑ cial watchdog has warned that the value of a Brexit transition period will start “eroding” by the start of 2018 as banks introduce “irreversible” contingen‑ cy plans by the start of the new year.

Andrew Bailey, chief executive of the Finan‑ cial Conduct Authority (FCA), told MPS yesterday that firms are unlikely to back‑pedal once they start relocating staff to the EU, or hiring new employees on the Continent.

“They are already taking positions ... for instance, they’re renting buildings in places at the moment. I think they would regard those sorts of decisions as essentially fairly reversi‑ ble,” Bailey told the Treas‑ ury Select Committee.

“I think where it really starts to get more irrevers‑ ible or at least harder – and this is what they all tell me – is in terms of staff, and that is two parts: one is either relocating staff or hiring staff.”

He said firms were con‑ scious of the Brexit dead‑ line at the end of March 2019 and would have to take action “in advance”.