BoE demands lenders seek its approval before relocating jobs to the EU
The Bank of England is demanding that lenders seek its approval before relocating UK jobs or operations to the EU.
The move comes after the BoE became concerned that European regulators are asking for more to move than is necessary for financial stability post-Brexit, the Financial Times first reported.
The BoE reportedly heard of several requests from the European Central Bank (ECB) that it considered excessive and beyond what is required from a supervisory perspective.
Sources told the Financial Times that BoE governor Andrew Bailey had taken a personal interest in the issue.
The BoE and ECB have been contacted for comment.
The City lost its pre-Brexit access to EU markets on 1 January when the UK left the single market and customs union.
The UK and EU last week agreed the terms for future cooperation on financial services between the two jurisdictions.
UK and European officials have been locked in discussions about the future of financial services since January.
Brussels can grant direct market access for foreign financial services firms if it deems their home market rules are similar to the EU’s own standards, a designation known as equivalence.
Brussels said an MoU will not automatically lead to market access for UK firms after the transition period ended at the end of last year. The agreement is similar to the existing deal between EU and the US and the bloc has declined to grant any long-term direct access to British firms.