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<p>The European Supervisory Authorities - which includes the European Securities and
Markets Authority - are a part of the EU’s joint supervisory framework for financial
services. The UK’s future position outside of the EU will mean that the UK is no longer
part of the joint supervisory framework.</p><p> </p><p>As part of preparations for
leaving the EU in any scenario, HM Treasury has delivered a programme of legislation
under the EU (Withdrawal) Act designed to ensure that the UK’s regulatory regime is
workable. These preparations include transferring certain regulatory and supervisory
functions currently carried out by the ESAs to the appropriate UK regulator, including
the FCA, where the transfer of those functions is necessary to ensure an operable
regulatory regime at exit.</p><p> </p><p>If the UK leaves the EU under the terms of
the Withdrawal Agreement reached between the UK and the EU, the UK’s exit preparations
would be delayed until the end of the agreed Implementation Period. Market access
arrangements would continue and the UK would remain part of the joint supervisory
framework, with ESA functions continuing to apply to the UK, until the end of the
Implementation Period.</p><p> </p><p>In any exit scenario, we expect UK regulators
to continue to work closely with their counterparts in the EU. This is demonstrated
in the Political Declaration agreed between the UK and the EU on the future relationship,
in which both sides commit to close cooperation on supervisory and regulatory matters.</p>
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