Yahoo Finance Australia's banking watchdog is on high alert over Brexit
The Australian Securities and Investments Commission has revealed it is “carefully monitoring” the Brexit situation as the UK edges closer to a no-deal.
The financial industry watchdog is liaising with other authorities in Australia and in the UK to develop a plan to mitigate the impacts of Brexit, including the case of a no-deal departure from the EU.
Australian businesses – including those that trade in wine, beef and foreign investment – have already raised concerns about the impacts.
However, commissioner Sean Hughes called for calm.
“ASIC is well placed to manage the impacts arising in a ‘no deal’ scenario,” he said.
“We have been working closely with the UK’s financial regulators and our aim is to limit disruption to Australian financial services and our markets.”
The watchdog said it wants to “enhance its cooperation” with its UK counterpart, the Financial Complaints Authority, as it assumes the credit rating roles and responsibilities currently held by the European Securities and Markets Authority (ESMA).
This means ASIC and FCA will enter new memorandums of understanding on trade repositories and credit ratings agencies.
ASIC also called on financial services firms with global operations to review their licensing arrangements and prepare for Brexit.
“In view of the Brexit date of 29 March 2019, we expect firms to have adequate contingency measures to mitigate the potential implications of Brexit for their operations and importantly, to ensure they have in place appropriate licensing arrangements to provide services in Australia.”
As prime minister Theresa May leads the UK through difficult Brexit negotiations, here’s what it means for Australia.
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