EU says bulk of UK financial sector would be cut off by no-deal Brexit
European Commission sets out contingency plans in the event of Britain crashing out of bloc without a settlement
Most banking, insurance and other financial companies in Britain would be cut off from the EU if there was a no-deal Brexit, the bloc’s executive body said on Wednesday. Financial services are Britain's most important tax-earning sector with the EU its biggest customer. The European Commission set out its contingency plans in the event of Britain crashing out of the bloc next March without securing a divorce settlement and transition period. “If the withdrawal agreement is not ratified, financial operators established in the United Kingdom will lose, as of the withdrawal date, the right to provide their services in the EU27 member states under the EU financial services passports,” it said in a statement. Brussels said it was taking preventive action to ensure EU customers could continue clearing derivatives transactions at UK operators like LCH for a year from March and use central securities depositories in Britain for two years. “The commission has concluded that EU27 companies ne...
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