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On 23 June the UK voted to leave the European Union (EU). This historic decision is creating near-term volatility in the capital markets, but it is important to note that the full impact of this decision for the UK and European financial services sector will unfold over a period of at least two years as the UK negotiates the terms of the exit.
In particular, it is worth noting that at this early stage there is currently no change to the application of pay regulation for UK or European firms. The FCA has today issued a communication highlighting the following points:
While there will be significant commentary and speculation on the impact of Brexit in the days to come, it will likely be some time before we have a clear picture of the actual implications, especially as it relates to the UK and European financial services talent markets. We will continue to monitor the situation as it progresses and will provide updates on important developments. In the interim, I have included a link to an article we recently published on our thought leadership platform, TheOneBrief, which outlines four key issues that we believe firms should be closely watching as we move forward.
Please contact Joel Davies or your McLagan relationship manager if you would like to discuss in more detail.