UK Regulator Seeks Brexit Bridge This Year to Avoid Cliff-Edge – Bloomberg

UK Regulator Seeks Brexit Bridge This Year to Avoid Cliff-Edge – Bloomberg

Andrew Bailey, head of the U.K. Financial Conduct Authority, said banks and asset managers need certainty this year on how much time they’ll have to transition to the post-Brexit world in order to avert “regrettable” decisions made in haste.

Bailey said in London on Thursday that regulators should strive to preserve as much open access and free trade as possible as the U.K. withdraws from the European Union, and that transitional arrangements are necessary to allow for a “smooth path” to the new landscape.

“It would be regrettable all round if we put firms into this position where they feel they’re in a bind because they have to do practical implementation of contingency planning before they know the context in which they’re going to be working in the future,” Bailey said. “We need it to be known during the course of this year.”

The financial industry has made a transition one of its top priorities in Brexit talks to avoid a cliff-edge effect whereby EU rules cease to apply in the U.K. before new arrangements are in place. With the Brexit starting gun fired earlier this year, firms have begun activating plans to move operations from London.

Deutsche Bank AG is preparing to move large parts of the trading and investment-banking assets it currently books in London to its home town of Frankfurt in response to Brexit, people familiar with the matter said.

For a QuickTake explainer on transitional arrangements, click here.

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