The Bank of England’s Financial Policy Committee (FPC) has slammed the EU for its slow progress on mitigating the risks of cross-border financial services post-Brexit.

At present the UK is part of the European wide financial services regulatory framework, which allows UK companies to provide cross-border financial services throughout Europe. After Brexit this is set to change, and may result in restrictions on how UK financial companies can service clients abroad.

Whilst it has been recognised that UK firms have implemented contingency plans in order to reduce the impact on European clients, the same can not be said for the EU authorities and member states. It is likely their current rues will restrict EU households and individuals from continuing to use some financial services provided by UK firms.

This could hit expats in the EU who have UK financial products such as insurance policies. It is commonplace for Brits overseas to retain and obtain insurance policies from their home country, due to the security and familiarity of having a UK contract. Whilst UK companies are quickly trying to restructure in order to be abe to still serve those clients, the EU authorities are not taking the same pro-active approach, according to the FPC.

About the author

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Traded the markets for over 15 years, including Commodities, Bonds, Currencies, Equities, and Indices. I have also worked as a Chartered Financial Planner.
CeMAP, CeFA, DipFA, AdvDipFA, Ba(Hons) Economics, Chartered ALIBF

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