Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the impact of uncertainty on the UK financial services sector's preparations for a no-deal Brexit.

The Treasury is in frequent contact with firms and regulators regarding their contingency planning for EU exit. Firms that are using the EU “passport” to serve clients in the EEA recognise that further steps to legal certainty remain, and are taking the sensible step of carrying out contingency planning with respect to their operations in the EEA in order to be ready for a scenario in which the UK leaves the EU without a deal.

The Government is also doing the necessary work to make sure that we continue to have a stable and functioning financial services regime at the point of leaving the EU in any scenario and to minimise disruption for UK households and businesses. As the Bank of England’s Financial Policy Committee set out in its Financial Policy Summary in March 2019, the core of the UK financial system, including banks, dealers and insurance companies, is resilient to, and prepared for, the wide range of risks it could face, including a worst case disorderly Brexit.

That being said, we are committed to preserving our competitive position in financial services after the UK leaves the EU. An implementation period is the most effective means of ensuring a smooth and orderly exit from the EU. That is why we continue to believe leaving the EU with the deal negotiated, including an implementation period, is the best approach.