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MPs ask FCA for Brexit deal analysis

MPs ask FCA for Brexit deal analysis

MPs have called on the Financial Conduct Authority to produce and publish impact analysis on the Brexit withdrawal agreement ahead of the Parliamentary vote on the deal.

The Treasury select committee has written to the FCA, the Bank of England and HM Treasury asking them to put together an analysis of the impact of the withdrawal agreement once it has been negotiated and publish this.

Nicky Morgan, the committee's chairman, has asked the FCA and the Bank of England to publish an analysis of the impact of the withdrawal agreement and future framework on their ability to meet their objectives, in good time before Parliament makes its decisions.

She has also asked HM Treasury to publish an analysis of the long-term, steady-state economic and fiscal impact of the choices facing Parliament, and the short-to-medium-term path for the economy and the public finances towards that state.

The long-term analysis would also examine a "no deal" scenario, with both this and the deal compared against the status quo of staying in the European Union.

Ms Morgan said: "Parliament’s vote on the withdrawal agreement and future relationship can only be meaningful if it is properly informed.

"The chancellor (Philip Hammond) has promised the committee that he will place the 'maximum amount of analysis in the public domain' on the economic and fiscal consequences of implementing the withdrawal agreement and future relationship, once it has been negotiated.

"I have written to him to set out the committee's expectations for what that analysis should contain.

"I also expect the Bank of England and the Financial Conduct Authority to explain how Parliament’s decision will affect their ability to meet their objectives, including financial stability and consumer protection.

"In the months ahead, the committee will press for robust and high-quality analysis on the consequences of Brexit for the economy and the public finances, so that parliament’s decisions can be based on the best possible evidence."

British membership of the European Union will end on 29 March 2019 but the EU's chief negotiator, Michel Barnier, has said negotiations must be completed before the end of October 2018 to give the 27 EU countries - and the UK's MPs - time to sign off the deal.

The UK is currently due to enter a transitional arrangement after 29 March 2019 which will end on 31 December 2020.

damian.fantato@ft.com