The Financial Services Bill 2012 applies equally
to Scotland, but lawyers Brodies ask, what happens if Scotland opts for
independence? “It seems highly unlikely that Scottish voters would favour the
introduction of the euro, if the outcome of a referendum favoured independence.
Scotland might retain sterling as its preferred currency. It seems likely that
an independent Scotland using the pound sterling as its currency would have to
adhere to the main provisions of the Bill if it wished to be part of a sterling
currency union.”
But they suggest an alternative-a parallel
universe; “An independent Scotland might decide to establish its own central
bank, issue its own currency and/or set up its own financial services
regulatory regime. It could be argued that this might prove to be less complex
and less restrictive than the alternatives.”
They provoke debate; “ In light of Scotland’s
heavy dependence on the financial services sector this is a subject which will
need to be thought through in great detail since the implications of any policy
decisions could have a significant impact on the country’s competitive
position. A good deal of financial regulation emanates from Brussels and is
then implemented in detail by individual member states. At present, almost all
financial services regulation applies equally across all parts of the UK. This
makes it relatively easy for firms to develop common forms and procedures which
can be used for transaction throughout the UK.”
There are several insurers based in Scotland who
sell more outside Scotland than at home, so they may have to choose whether to
stay in Scotland or move to England.
Brodies speculate, “If Scotland were to become an
independent country, would we see the emergence of a new Scottish Financial
Services Regulator? This is a crucial question since Scottish businesses sell
regulated products to consumers in all parts of the UK and businesses in other
parts of the UK sell regulated products to Scots.”
The lawyers may frighten Scottish insurers with their next
suggestion, “ Might it require firms
operating in Scotland to develop different requirements for financial
promotions or documentation for use with financial services products in Scotland?”
