The banks in the United Kingdom would face a set of tougher rules with a new proposal from the Bank of England which is considered as an important break away from the European Union laws. The Prudential Regulation Authority (PRA) has ruled against a capital benefit for banks for their investments in software and technology. Last year, the EU had allowed its banks to account for investments in software as part of their core capital levels. Making a scathing statement on the EU’s policy, BoE governor Andrew Bailey said that the policy did not give a correct estimation of a bank’s ability to absorb losses.
The Brexit and regulatory changes, It is not just financial services that are going through a tumultuous phase of regulatory changes, Britain’s exit from the EU has brought along with it a host of complications in terms of rules and regulations in a gamut of services. As part of the Brexit, the UK does not any longer belong to the customs union. This exposes the UK businesses to a host of new paperwork and documentation. Businesses have seen their goods being held up in border areas due to lack of clearances.