FCA says Brexit will have major implications for finance

The logo of the new Financial Conduct Authority (FCA) is seen at the agency's headquarters in the Canary Wharf business district of London April 1, 2013. REUTERS/Chris Helgren

LONDON (Reuters) - Britain’s financial watchdog said on Friday the UK vote to leave the European Union will have “significant” implications for the country and it was monitoring markets rattled by the decision.

The bulk of rules in Britain’s financial sector have been written by the EU and the country will now have to negotiate new trading terms with the remainder of the bloc.

“This regulation will remain applicable until any changes are made, which will be a matter for government and parliament,” the Financial Conduct Authority said in a statement.

A sweeping reform of EU securities markets, known as MiFID II, won’t be introduced until 2018 but the FCA said firms must continue with implementation plans for legislation that is still to come into effect.

Reporting by Huw Jones, editing by Andy Bruce