Question to the Department for Exiting the European Union :

To ask the Secretary of State for Exiting the European Union, what the (a) Government and (b) EU position is on the enforceability of financial contract continuity after the UK leaves the EU.

There is a shared interest for both the UK and the EU in ensuring that we avoid outcomes that impose unnecessary costs and disruption on individuals and firms as we leave the EU. The Government and the EU both recognise that our exit has the potential to impact the continuity of service provision. We have been clear that a deep and ambitious future partnership covering financial services – in combination with an agreement on a time-limited implementation period – is the best way to mitigate these risks.

The Government announced on 20 December 2017 that we will legislate, if necessary, to ensure that contractual obligations of EEA firms contracting with UK customers, such as those found in insurance contracts, can continue to be met. This would apply to in-bound firms only – the UK Government believes it in the interest of businesses and consumers in both the UK and the EU to ensure reciprocal arrangements are in place.

We are working, together with our regulatory authorities, to provide assurances for firms and consumers that we will deliver an orderly exit from the EU. We also welcome the fact that the European Central Bank and the Bank of England have recently agreed to convene a technical working group to mitigate risks to financial services posed by our exit from the EU. While this working group is separate from the ongoing negotiations with our European partners, it provides an opportunity for UK and EU authorities to discuss risks, gives reassurance for firms, and allows UK and European financial services regulators to work together to ensure a smooth and orderly exit.