EU companies risk financial harm from Brexit as the authorities in Brussels are on track to cut them off from parts of Britain’s markets, the Bank of England has warned.
The British authorities have made sure cross-Channel trade in financial services can continue as far as UK banks, insurers and other institutions are concerned, but EU authorities have not taken the same measures to keep business flowing.
“We have taken steps to ensure there is open access to UK financial services, including for clients based in the EU. But we cannot prevent disruption for EU clients caused by measures taken elsewhere, regrettable though that is,” said Andrew Bailey, the Governor of the Bank of England.
“If you are in the UK and you depend on access to some bit of the EU’s financial system, we will not put any roadblocks in your way – you can do that.
“But the EU hasn’t matched us in that respect. I cannot say to citizens in the rest of the EU, if you have that sort of arrangement and you have been depending on it, if you have an insurance contract in London or you are making a payment to an institution in the UK, I cannot give you an assurance that there won’t be some form of disruption, because we are not in control of that end of it.”