The UK’s finance regulator says Brexit is costing it a total of £30m this year as it revealed the extent to which it has been hit by Britain’s divorce from the European Union.
The Financial Conduct Authority (FCA) said on Monday that the decision to leave the European Union will have a “substantial impact” on the way it works.
It will raise £5m through levies on firms, such as credit rating agencies, and will absorb £14m in extra costs by delaying unimportant work.
The markets watchdog also urged European Union regulators to start coordinating on a smooth Brexit transition in 2019, although EU officials say firms should continue drafting contingency plans and projections based on a hard Brexit.
“We should not hold up the work, in my view,” FCA chief executive Andrew Bailey told Reuters.
Uncertainty over how Brexit will impact businesses has led to the world’s biggest financial firms forecasting bleak UK economic growth.
The majority of banks, asset managers and insurers warned on Monday that the UK will lag behind all other G7 advanced countries this year.
Concern over Brexit has also hit investment in UK firms, with many waiting until the post-Brexit trade picture becomes clearer.
