It has been several weeks since the UK voted to leave the European Union (“Brexit”). At the time, the FCA announced that firms should plan to implement MiFID II as before, since the start date is before the possible Brexit date.

Since then, some work has started on the possible form of Brexit. Recently the UK government have issued this report looking at the possible impact of Brexit on several areas. This includes financial regulations such as MiFID II and EMIR, examined in the report from page 39. The section looks at possible implications of the UK being a “third country” and requiring equivalence.

This article by Reuters on the Complinet site examines recent thoughts on the issue. It points out that UK firms are likely to implement MiFID II and then need to address issues brought about by Brexit. This will come at the same time as continuous changes in existing regulations, such as the EMIR reporting changes coming next year. it refers to this report by JWG which estimates the possible cost of Brexit on the financial services sector.

Those in energy and commodities also need to deal with the physical side of the changes. It remains to be seen how Brexit will impact rules such as REMIT. Never the less, the financial side of the rule changes are likely to be challenging.