In a press release issued on 28 March 2018, the Bank welcomed the agreement between the UK and EU27, saying: “it will be very difficult for all financial institutions to have completed all of the necessary steps required to mitigate the risks to the provision of financial services in the EU and the UK ahead of March 2019.”

According to the communiqué, the Bank of England’s approach to preparations for EU withdrawal assumes that there will continue to be a high degree of supervisory cooperation between the UK and the EU.

“This reflects the UK financial system’s role as both a national asset and a global public good, bringing shared risks as well as wide benefits.”

In light of the agreement at the EU Council, the Bank considers it reasonable for firms currently carrying on regulated activities in the UK by means of passporting rights, or the EU framework for central counterparties, “to plan that they will be able to continue undertaking these activities during the implementation period in much the same way as now.”

The press release continued by saying:

“The government has committed to bring forward legislation, if necessary, to create temporary permission regimes to allow relevant firms to continue their activities in the UK for a limited period after withdrawal. In the unlikely event that the withdrawal agreement is not ratified, this provides confidence that a back-stop will be available.”