Bank of England moves to reassure European firms with post-Brexit offer
1 min read
The Bank of England is reportedly set to announce new rules that will make it easier for European banks to operate in the UK after Brexit.
According to the BBC, the move is designed to make the Brexit transition as painless as possible for wholesale financial firms, and will apply even under a ‘no deal’ scenario.
The intervention comes after warnings from international banking giants over the lack of certainty for business as Britain prepares to leave the EU.
Under the plans - set to be announced today - banks offering wholesale finance will be able to continue to operate under existing rules.
It will mean EU firms operating through branches can stay on in the UK without going through the expensive process of creating subsidiaries.
It comes after EU chief negotiator Michel Barnier warned on Monday that Brexit trade talks would not include a special deal for the UK’s financial sector.
He said: "There is no place (for financial services). There is not a single trade agreement that is open to financial services. It doesn't exist.
“In leaving the single market, they lose the financial services passport."
Miles Celic, head of the lobbying group TheCityUK, said: "Encouraging EU banks to continue to operate in the UK will help preserve financial stability for the UK and the EU and will help defend London's position as an open global financial centre.”
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