In the first of its twice-yearly Financial Stability Report, the BoE criticised the EU27 for failing to address the issue of post-Brexit contract continuity.
Miles Celic, Chief Executive Officer, TheCityUK, said,
The biggest threat to financial stability right now is continuity of contracts post-Brexit. The biggest barrier to addressing this issue is the EU regulators failure to accept and get to grips with the risk. This must not be drawn into the politics of Brexit – it is a technical challenge which needs a technical solution. The industry is doing everything it can to address this problem and propose a workable solution, but it cannot do so alone.
“EU regulators need to explain what is preventing them from taking the reasonable steps necessary to defuse this risk to the European financial system. The time has come for European regulators to focus less on the negotiating ambitions of Brussels and more on the needs of customers.”