Financial Services

(asked on 25th September 2019) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to Operation Yellowhammer HMG Reasonable Worst Case Planning Assumptions paragraph 8, if he will list all cross-border financial services and their estimated value to the UK economy which will be disrupted in the event that the UK leaves the EU without a deal.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 3rd October 2019

Working closely with the regulators, the government has legislated extensively to prepare for a No Deal. This includes the Temporary Permissions Regime (TPR) which will allow EEA firms currently passporting into the UK to continue doing so temporarily after Brexit, and a transitional power for regulators to phase in post-exit regulatory requirements for firms where they have changed as a result of the UK leaving the EU.

Following this and wider action by industry and regulators, the Bank of England’s Financial Policy Committee (FPC) judges that “most risks to UK financial stability from disruption to cross-border financial services in a ‘no deal’ scenario have been mitigated”. The FPC have also said that the core of the UK’s financial system is “resilient to and prepared for the wide range of risks it could face, including a disorderly Brexit”. While most risks have been addressed, the FPC is clear that the UK authorities are not able to fully address risks to EEA customers through unilateral action and “in the absence of further action by EU authorities, some disruption is possible.”

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