Question to the HM Treasury:

To ask Her Majesty's Government what arrangements are being made to assist UK financial services industries with the review, modification, or termination of international contracts with companies and countries in the EU27 before 11pm on 29 March 2019, in order to ensure that relevant contracts will be legally enforceable after that time.

As the Financial Policy Committee explained in its November Financial Stability Report, a withdrawal of permissions to conduct cross-border business following the UK’s withdrawal from the European Union could impair financial companies’ ability to perform or service outstanding financial contracts. This could affect both UK and EU financial services firms and their customers. The FPC judges that the largest identified risks relate to over-the-counter derivatives and insurance contracts.

The Government has been actively engaging with the UK regulators and with the financial services sector to understand how the UK's exit from the EU could impact financial services firms and their customers, including through the effect of withdrawal on existing contractual relationships. The Government is considering all options for mitigating risks to the continuity of outstanding cross-border financial services contracts.