MEP warns Brexit may lead to tougher advice rules

MEP warns Brexit may lead to tougher advice rules

British financial advisers may find themselves facing more regulation rather than less once the UK leaves the European Union, they have been warned.

Speaking at the annual summit of the Personal Investment Management & Financial Advice Association, MEP Kay Swinburne, who is vice-chairman of the European Parliament's economic and monetary affairs committee, said many European reforms had been driven by the UK.

She said: "There has been a big fudge by the UK over the last few years where they have blamed the European Union for an awful lot.

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"The rules may become more specific, the FCA may be able to correct them when they know they have got them wrong but the rules are British in origin.

"The FCA is now released by Brussels to go further. The FCA is going to be even tougher because Brussels prevented them from going further."

The Financial Conduct Authority has previously said that Brexit will not see a "bonfire of regulation".

Last year Christopher Woolard, the regulator's executive director of strategy and competition said many standards were now set globally and dispelled the idea that post-Brexit Britain could attract business by slashing its regulatory burden because there tended to be a "flight to quality".

John Barrass, deputy chief executive of Pimfa, said the issue of passporting, which allows firms to operate across the EU, was the biggest issue facing the trade body's membership.

He said firms would have to decide whether to continue serving any clients they might have in Europe and, if they wanted to, would have to either set up a presence on the continent or merge with a European company.