Financial services firms may see another £20 billion in costs added to their regulatory change programmes if the UK votes to leave the European Union on June 23, according to JWG, a regulatory think tank. Rather than reducing red tape, Brexit would put financial services firms in a position where up to 60 percent of regulations might change, said the report, Brexit: Changing out the Engine of Finance, which was published today. A vote to leave would also bring at least 10 years of regulatory uncertainty to the UK's financial services sector and put a huge strain on already scarce human and financial resources. JWG's paper has avoided taking sides on the referendum, but has sought instead to define the costs and consequences of Brexit for a UK financial services sector already overburdened regulatory change programmes. "If Brexit happens, we stop talking about everything else, and complicate MiFID implementation even more."
Full article; May 11th 2016, Rachel Wolcott, Reuters