UK financial services regulation may alter but it won't ease in a post-Brexit world according to a new report from KPMG "The future shape of UK FS regulation: Rule taker or rule maker?".
KPMG says that whilst the UK regulators have been explicit that they will not deviate from EU regulatory standards, the UK's departure from the EU leaves considerable scope for divergence.
Julie Patterson, Regulatory Insight Centre, KPMG UK, comments: "Achieving a financial services deal seems increasingly unlikely. This may leave considerable scope for regulatory change.
"The regulators on both sides have been clear they don't want regulatory arbitrage, but the UK has in the past taken a different path, such as being the only country in the EU27 to ring fence its banks, and that trend will become more common when we are no longer in the EU. I see no sign that the UK regulators' tendency to lead the debate on risk and conduct issues will abate so regulation may become more demanding, not less."