Brexit disruptions to financial services could draw EU action, official suggests

27 September 2018 6:34pm
Potential Brexit disruptions to financial services could draw EU action where central bankers see a need for it, a senior European Commission official said today.

The commission is waiting for feedback from a task force of the European Central Bank and Bank of England, John Berrigan, deputy director of the EU executive's financial services division, told a conference* in Brussels. “We have time, and we need to get that problem identified” to provide the correct solution, he said.

The commission is aware of the “nervousness” that financial executives are experiencing about uncertainty over the legal status of derivatives, insurance and some other matters after next March, Berrigan said. A core concern is that the terms of the contracts could be in doubt if the UK and EU fail to agree on cross-jurisdiction recognition of laws.

But Berrigan had plain advice to those financiers: “Be calm.”

* “Financing Growth: the 2018 European Banking Summit,” European Banking Federation, Brussels, Sept. 27, 2018.