Tuesday 13 July 2021 7:39 pm

Brexit: EU unlikely to throw doors open to UK financial services, says Bailey

Andrew Bailey, Governor of the Bank of England, said on Tuesday he does not expect the EU to open the doors to UK financial services exports following Brexit.

“On equivalence, I think it’s fair to say that nothing really has moved forwards” Bailey told a news conference today.

Brussels has yet to decide whether rules governing the City and Britain’s financial services sector are equivalent to regulations in the EU. Without this recognition, London firms will be blocked from gaining access to the market.

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The downbeat comments reiterate remarks made by Chancellor Rishi Sunak who said this month that a financial services deal between the two blocs “has not happened” despite the Brexit transition period ending over six months ago.

The UK has recognised equivalence for the EU in several financial service activities, but these have not been reciprocated in Brussels.

Investors should be live to risks of cryptocurrencies

Bailey reiterated warnings that investors should understand the risks involved when purchasing highly speculative cryptocurrencies at the news conference.

The warning comes after the Bank said price volatility in crypto assets points to “potential pockets of exuberance” in its latest Financial Stability Report.

The report said more institutional investors are becoming involved in crypto assets. Bailey reiterated that the Bank is monitoring them.

Read more: Bailey attempts to quash inflation fears