The Bank of England’s Financial Policy Committee has declared “material risks remain” to the stability of derivative contracts between EEA-based customers and UK-based financial companies and have complained that little or no progress has been made in agreeing legislation – which will be required in both the UK and EU27 in the event of Brexit.
The FPC’s comments, in their Financial Stability Report, published today, have reportedly provoked the European Banking Authority into complaining that the UK had not done enough to prepare for Brexit.
Commenting, Gareth Thomas MP, leading supporter of the People’s Vote campaign, said:
“If derivatives - a key part of the City of London’s financial offer - collapse on the day we leave the EU that can only be very bad news for UK taxpayers and public services.
“The unedifying war of words between the Bank of England and the European Banking Authority just shows what a total shambles the Brexit process has become.
“The damage to the City that Brexit threatens will mean fewer jobs and smaller tax returns in the UK. The demand for a People’s Vote on the final Brexit deal needs to be heeded before permanent scars are left on the exchequer.”
Notes to editors
The FPC’s report can be read here: https://www.bankofengland.co.uk/-/media/boe/files/financial-stability-report/2018/june-2018.pdf