The motor industry has joined the chorus of British businesses calling for the UK government to calm concerns, safeguard sectors and maintain economic stability. The referendum to decide Britain’s membership of the EU – which led to a 52% majority voting in favour of leaving – has sparked turbulence in financial markets around the world following uncertainty over the country’s exit strategy and the possible future outcomes.
In the wake of the referendum decision, the motor industry and others operating under financial regulations have been reassured by the Financial Conduct Authority (FCA), which has stated for the time being it is business as usual. Car dealers offering finance agreements and financial aftercare products must continue to abide by their obligations under UK law, including those derived from EU law.
Advice from the FCA
The FCA stated: “Much financial regulation currently applicable in the UK derives from EU legislation. This regulation will remain applicable until any changes are made, which will be a matter for Government and Parliament.”
“Firms must continue to abide by their obligations under UK law, including those derived from EU law, and continue with implementation plans for legislation that is still to come into effect.”
“Consumers’ rights and protections, including any derived from EU legislation, are unaffected by the result of the referendum and will remain unchanged unless and until the Government changes the applicable legislation.”
Read the full statement on the FCA website.
Safeguarding the UK motor industry
The Society of Motor Manufacturers and Traders (SMMT) has issued a statement outlining members’ desires following a post-Brexit Britain. SMMT Chief Executive Mike Hawes said: “Government must now maintain economic stability and secure a deal with the EU which safeguards UK automotive interests. This includes securing tariff-free access to European and other global markets, ensuring we can recruit talent from the EU and the rest of the world and making the UK the most competitive place in Europe for automotive investment.”
The National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle dealers in the UK, also issued a statement claiming there are £35.3 billion worth of cars imported to the UK from Europe. Director of the NFDA Sue Robinson said: “We urge the UK government to swiftly negotiate a trade deal across Europe and the rest of the world and to secure currency stability, such that there is a level playing field for our members to operate in. Clearly it is as important to European importers as it is to the UK market that a deal is put in place very quickly.”