BoE says Brexit transition deal gives firms breathing space
The Bank of England has said overseas financial firms operating in the UK should assume they can carry on as normal during the proposed transition period after Britain leaves the EU.
The BoE had warned that it would be difficult for firms to prepare for an abrupt Brexit in March 2019.
At the EU’s March summit the UK government agreed a transition period until the end of 2020. Under the deal, Britain will operate under all single market rules and judgments from the European Court of Justice with no further say in future EU decisions.
The BoE said the agreement gave firms breathing space to prepare and that authorisation by its Prudential Regulation Authority division will not be needed until the end of the transition.
"Firms should consider how best to make use of the additional time provided by the implementation period in their planning," Sam Woods, a BoE deputy governor, wrote in a letter to firms.
"The PRA will continue to work closely with firms and will provide guidance on the timing of their applications in the light of firms’ individual circumstances, in the context of any relevant developments in the political process, and with a view to making the process run as smoothly as possible."