As part of the launch of the Financial Conduct Authority’s (FCA) business plan, the FCA has announced that it has increased its spending on Brexit to £30 million and will need to raid other budgets to cover the cost as the clock ticks down towards EU withdrawal.

This year the FCA has taken £14 million from its enforcement budget and has also hit financial companies with an extra £5 million in its annual funding requirement, up 3.2% overall to £543.9 million.

Chief Executive Andrew Bailey said “The high level of resource we need to dedicate inevitably affects the amount of work we can undertake in other areas, the Financial Conduct Authority’s involving particularly rigorous scrutiny and challenge. We are doing this not because there are no rules of engagement. There certainly are. But we are aware the issue has arisen. We are actively working on what could be done, either within the existing rules or under new ones.”

The Brexit spend compares with a total of just £2.5 million in the FCA’s business plan from last year.
The FCA task in setting up a new regulatory framework post-Brexit as well as advising the Government on the potential impact, according to most commentators this will mean that the final bill is likely to rise further.