The Bank of England warned that regulatory authorities and politicians in both the UK and the European Union are not doing enough to prevent the “material risks” of disruption presented by Brexit that are hanging over vast numbers of financial contracts such as derivatives contracts and insurance policies, even if a transitional arrangement is agreed.
The warning from the BoE on Friday comes a week before a key European Council meeting where a transitional deal will be at the top of the agenda. David Davis, the UK minister leading the Brexit negotiations, said this week that he could “live with” with an implementation period of 21 months, slightly shorter than the two years the government said it would seek.
“Since November, in the United Kingdom, progress has been made towards mitigating risks of disruption to the availability of financial services. Nonetheless, material risks remain, particularly in areas where actions would be needed by both the UK and EU authorities,” said the BoE’s Financial Policy Committee, which tries to spot and mitigate risks to the UK’s financial system.
via Irish Times
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