FCA head calls for Brexit transition arrangements

The head of the Financial Conduct Authority has urged the UK and the EU to outline a transition agreement as soon as possible.

Speaking to a Lords sub-committee today, Andrew Bailey said he was not hopeful the government would achieve a signed agreement, but some form of commitment would be important.

Read more: German central banker wants clearing business to stay in London post-Brexit

"I would not expect that we will get a signed agreement on transition, but I do think that we need something that is legally binding in the sense that it can be applied, and to do that I think it needs to be something like a unconditional commitment on both sides," he said.

Bailey also raised concerns about the legal status of financial contracts such as insurance policies, saying this was a "symmetric" risk affecting both the UK and the EU.

Read more: With the rise of fintech, banks have more on their plate than Brexit

The EU has said it will not start talking about trade or transitional arrangements until the UK has settled its so-called "Brexit bill".

However, reports are now suggesting that Theresa May has agreed a framework for the financial settlement, with a view to starting the next phase of negotiations after the European Council meeting at the beginning of next month.

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