The head of the U.K. Financial Conduct Authority added urgency to Brexit negotiations by saying European governments must reach a transitional agreement for financial services by the end of March to avoid the risks presented by EU departure.
Financial contracts between the U.K. and E.U. worth up to a notional 26 trillion pounds ($36.4 trillion) -- particularly those related to derivatives and insurance -- may no longer be “serviceable” should an agreement not be in place, FCA Chief Executive Officer Andrew Bailey said Monday in a speech. He warned the effects would be felt in the EU as much as they would in the U.K.