BoE clashes with European Commission on Brexit transition

Failure to layout framework for temporary permissions regime

The Bank of England (BoE) has criticised the European Commission over its failure to make sufficient progress on ensuring EU customers of UK financial service firms will continue to be served after the UK is scheduled to leave the bloc in March 2019, putting financial stability at risk.

For its part, the UK government has promised legislation on a "temporary permissions regime", which enable UK customers of UK firms to continue using those services post-Brexit, without the need for financial services providers to transfer contracts to the EU. Lord Mandelson: Asset managers face 'maximum regulatory uncertainty' amid 'blind Brexit' In its bi-annual Financial Stability Report (FSR), the central bank said the commission had failed in "not indicat[ing] a solution analogous to a [UK] temporary permissions regime", according to Bloomberg. An estimated £29trn of derivativ...