The figures were originally requested in July when Mr Bailey, chief executive of the Financial Conduct Authority, appeared in front of the committee.
Advertisement
The “passport” rights allowing 5,500 British-based financial firms to operate freely across the European single market are at stake, the country’s financial watchdog has revealed in highlighting potential fallout from Brexit.
The figures come a day after the head of Germany’s central bank said Britain would lose these rights if it does not remain part of the single market.
“These figures give us an initial idea of the effects of losing full access to the Single Market in financial services”.
In the run-up to Britain’s European Union exit referendum in June, major players in the City of London finance district warned about the impact of possible departure from the European Union single market – and the loss of passporting.
Moody’s noted that some passporting rights could be salvaged by incoming European Union regulations under the Markets in Financial Instruments Directive II (MIFID II), which would allow non-EEA financial institutions to operate across the single market and essentially bypass cross-border restrictions.
However, third-country equivalence provides less certainty for firms than passporting, as it depends on an European Commission judgement – a political decision – which could take time to make, and withdrawn at a future date.
Bundesbank president Jens Weidmann said this week that these rights were tied to the single market.
Robert Fico, Prime Minister of Slovakia, said that the European Union will ensure that the output of Great Britain from the bloc will be an “extremely painful” one.
In her first U.N. speech as United Kingdom leader, Prime Minister Theresa May tried to portray an outward-facing, reliable Britain capable of delivering solutions to global challenges despite its Brexit woes, and decried violence in Syria that has affected millions of lives.
Advertisement
He added: “This issue needs to be right at the top of the in-trays of the Chancellor, the Governor of the Bank of England, and the UK’s lead negotiators”.
