Following the EU referendum result in June, attention is turning towards making the best of Brexit.
The Association of British Insurers (ABI) has set out its top five priorities for the insurance and long term savings industry following Brexit.
The new priorities, which were agreed by the ABI Board and formed the basis of a submission to Government, are:
- Securing a regulatory environment that is appropriate for the UK market.
- Retaining the ability to passport out of and into the UK.
- Closely mirroring the EU data protection regime to avoid a quagmire of complexity around how personal and non-personal data is protected.
- An improved future migration policy that enables the employment of high-skilled professionals from both within and outside the EU.
- A strong focus on regulatory dialogue and international agreements in overseas financial services markets, especially in India and China.
Director General of the ABI Huw Evans said:
“It is important that our world-leading market – the largest in Europe – is clear on what a successful outcome from EU exit would look like. That means identifying the key challenges to overcome and the opportunities we must grasp to make the best of Brexit.
“The ABI Board has set out five areas it considers important for the UK to focus its efforts on as it prepares its initial negotiating position. Whether it’s regulation in the UK’s interest, retaining passporting, preventing a data protection quagmire, seeking a new improved immigration system or opening up trade deals in key markets like India and China, we are determined to get the best possible outcome for the industry.
“There are many challenges ahead but handled right and the future for the UK insurance and long term savings industry remains bright.”
This focus on regulation in the UK’s interest, passporting, data protection, skills and international trade should help the insurance and long term savings sector make the most of Brexit.
Of course until Article 50 is triggered, allowing formal negotiations between the UK and remaining EU member states to begin, it is hard to know what future regulation of financial services might look like.
In the past week we have seen our regulator, the Financial Conduct Authority (FCA), publish EU inspired consultations designed to change adviser charging rules and widen the definition of independent financial advice, as well as introduce new rules forcing advisers to tape phone calls with their clients.
Whether the UK will still be a member of the EU when these new FCA rules come into force is yet to be seen, but for now at least the UK regulator is continuing to work on the basis we are all subject to EU rules and regulations.
