How does Brexit affect capital market regulation?

Brexit affects which regulatory rules apply (UK vs EU), the recognition of EU rules/equivalence, market access (passporting loss), changes to disclosures, adjustments to cross-border transactions, and shifts in where oversight lies.

What must firms do about their disclosure and reporting obligations post-Brexit?

Firms must review whether their existing disclosure obligations still apply, check for new local requirements, update offering documents, ensure they comply with any changes in continuous reporting regimes, and rework investor communication policies.

Do I need new licensing or authorisation for cross-border operations?

Possibly yes — after Brexit, many passporting rights for financial services into the EU were lost, so firms may need to seek new authorisations in EU member states, or rely on equivalence regimes where available.

How should contract documents and listing agreements be updated?

Contracts, prospectuses, listing agreements, clearing/settlement agreements must be reviewed to ensure they reference the correct jurisdiction, law, regulatory obligations, and that any clauses reliant on EU law are adapted.

What are the tax and capital flow implications of Brexit?

Shifts may include changes in withholding tax regimes, restrictions or new requirements for cross-border capital movements, changes in clearing/settlement location, and impacts on cross-border investors.

How can I ensure my compliance stays updated post-Brexit?

You should set up a monitoring function to track regulatory changes, review transitional measures, adjust your compliance program, retrain staff, and engage with legal/advisory support to respond to evolving Brexit impacts.

Brexit Impact on Capital Markets | Compliance Advisory

Brexit Impact

Capital markets are financial systems that enable companies and governments to raise capital and channel funds into productive investment. This is primarily achieved through equity markets, such as stock exchanges like the London Stock Exchange (LSE), and debt markets, which include the issuance of corporate bonds and government securities such as gilts. In addition, derivatives markets and foreign exchange markets form an integral part of capital markets, providing mechanisms for risk management, trading, and liquidity.

London has historically played a central role as one of the world’s top global financial hubs and continues to serve as Europe’s leading financial center.

Against this backdrop, Brexit has introduced several key changes affecting UK capital markets.