The European Union spurned U.K. calls for a legislative fix to the threat Brexit poses to trillions of dollars of financial contracts, telling banks and insurers to solve the problem themselves.
Valdis Dombrovskis, the EU’s financial-services policy chief, said the private sector must take the lead in ensuring that existing contracts won’t be disrupted when the U.K. exits the EU. At issue are 96 trillion pounds ($134 trillion) of derivatives and tens of millions of insurance policies that U.K. regulators say might be thrown into disarray because firms could lose their ability to fulfill agreements with clients.
