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Brexit Contingency Plans to be Drafted by Financial Firms, Orders Bank of England

  • As per reports, the financial firms received a deadline of July 14 by Bank of England in order to explain how plans are being taken further for the UK's departure from the European Union. They have also been warned by the bank to be prepared for every possible outcome, which may even include a hard Brexit.

    The bank ordered hundreds of banks, insurers and other financial firms on Friday to get contingency plans in place. The move came after Prime Minister Theresa May triggered article 50 last week and officially launched the Brexit process.

    The main concern for financial firms is if the UK is still going to hold the passporting rights which would allow British-based banks as well as insurers to continue business with the rest of the European Union post Brexit.

    Several companies have already come forward with plans to move jobs and operations out of the UK. Now all those companies with cross-border activities between the UK and the rest of the EU are being called by the bank to report by July 14.