Breaking Forex News... It looks like London’s Retail FX brokers and financial institutions can breath easy. At least for now.
UK financial regulator the FCA issued a statement this afternoon, indicating that it expects the UK will remain within the MiFID license passporting system after Brexit is implemented.
What exactly did the FCA say is likely to happen?
UK financial regulator the FCA issued a statement this afternoon, indicating that it expects the UK will remain within the MiFID license passporting system after Brexit is implemented, allowing financial services companies (such as FX brokers) to receive a license in one EU jurisdiction, and passport that license fairly easily elsewhere across the EU.
For Forex brokers, passporting allows them to market and take clients from across the EU including from the lucrative UK market, while being licensed in any EU jurisdiction. Many Retail FX brokers are licensed by CySEC in Cyprus.
In the FCA’s words,
it is anticipated… that firms will be able to continue to benefit from passporting between the UK and EEA after the point of exit.
A major unknown of the Brexit process for financial institutions has been the issue of MiFID passporting. That, in the FCA’s view, seems to be a non-issue for now.
What the FCA’s statement also means is that the UK regulator is likely to adopt the final rules that pan-European regulator ESMA has proposed for the leveraged trading sector – cutting max leverage allowed to 30x on FX and CFD trading, banning Binary Options altogether, banning bonus payments to clients, and requiring negative balance protection.
The FCA’s full statement on the matter follows (we have bolded some of the text for emphasis):
https://www.leaprate.com/forex/regul...e-post-brexit/
UK financial regulator the FCA issued a statement this afternoon, indicating that it expects the UK will remain within the MiFID license passporting system after Brexit is implemented.
What exactly did the FCA say is likely to happen?
UK financial regulator the FCA issued a statement this afternoon, indicating that it expects the UK will remain within the MiFID license passporting system after Brexit is implemented, allowing financial services companies (such as FX brokers) to receive a license in one EU jurisdiction, and passport that license fairly easily elsewhere across the EU.
For Forex brokers, passporting allows them to market and take clients from across the EU including from the lucrative UK market, while being licensed in any EU jurisdiction. Many Retail FX brokers are licensed by CySEC in Cyprus.
In the FCA’s words,
it is anticipated… that firms will be able to continue to benefit from passporting between the UK and EEA after the point of exit.
A major unknown of the Brexit process for financial institutions has been the issue of MiFID passporting. That, in the FCA’s view, seems to be a non-issue for now.
What the FCA’s statement also means is that the UK regulator is likely to adopt the final rules that pan-European regulator ESMA has proposed for the leveraged trading sector – cutting max leverage allowed to 30x on FX and CFD trading, banning Binary Options altogether, banning bonus payments to clients, and requiring negative balance protection.
The FCA’s full statement on the matter follows (we have bolded some of the text for emphasis):
https://www.leaprate.com/forex/regul...e-post-brexit/