The UK’s financial watchdog will give City firms a 15-month grace period to comply with the new regulatory environment in the event the country leaves the European Union without a deal on March 29.

The Financial Conduct Authority has published its “near-final” guidance on what a no-deal Brexit will mean for UK-based financial services firms, including banks, insurers and fund managers. The FCA has included a relief period that will mean firms “do not generally need to prepare now to meet new UK regulatory obligations”.