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"The longer term impacts of the decision to leave the EU on the overall regulatory framework for the UK will depend, in part, on the relationship that the UK seeks with the EU in the future."
The FCA says it is now in "very close contact with the firms we supervise" as well as the Treasury, the Bank of England and other UK authorities, and are monitoring developments in the financial markets.
The FCA confirmed that while much financial regulation currently applicable in the UK derives from EU legislation, "this will remain applicable until any changes are made, which will be a matter for Government and Parliament".
The regulator stressed that firms must 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 protections, including any derived from EU legislation, are also unaffected by the result of the referendum and will remain unchanged unless and until the Government changes the applicable legislation.
The FCA concluded: "The longer term impacts of the decision to leave the EU on the overall regulatory framework for the UK will depend, in part, on the relationship that the UK seeks with the EU in the future. We will work closely with the Government as it confirms the arrangements for the UK’s future relationship with the EU."
Earlier today, Bank of England governor Mark Carney said the Bank "stands ready to provide more than £250bn of additional funds through its normal facilities" to support the functioning of markets.
The Bank of England said it is also able to "provide substantial liquidity in foreign currency, if required" and will be considering "additional policy responses" in the coming weeks.
Carney reassured that "the Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward".
