UK regulator and EU tell banks to prepare for hard Brexit
Financial firms based in Britain could face an abrupt end to EU market access
London — UK banks and insurers must plan for a "hard" Brexit in case a transition period is not in place by March 2019, a senior British regulator said on Thursday in a warning echoed by Brussels. "With eight months until we exit the EU in March 2019, it is important we all — regulators and industry — continue to plan for a range of scenarios," said Nausicaa Delfas, head of international strategy at the Financial Conduct Authority (FCA). "Across the FCA, together with colleagues from the Bank of England and the government, we have been working to develop a number of safeguards and contingencies, in the event of a hard Brexit, to ensure that ‘day one’ works smoothly," Delfas told a TheCityUK event.
The UK and EU have agreed on a transition deal bridging Brexit in March 2019 and the end of 2020, but it has yet to be ratified, meaning financial firms based in Britain could face an abrupt end to EU market access. EU banking, insurance and market watchdogs have already warned their...
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