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U.K. Call for Brexit Contract Fix Wins German Support

  • BaFin’s Hufeld says political solution needed for continuity
  • EU previously said industry should be responsible for a fix
The Bank of England (BOE) building stands in the City of London.
Photographer: Jason Alden/Bloomberg
Updated on

European Union and U.K. authorities must agree on a political solution to the threat Brexit poses to trillions of dollars in derivatives and insurance contracts, according to Germany’s top financial regulator.

Felix Hufeld, the president of BaFin, said the industry alone cannot solve the problem, in comments that appear to break with EU policy makers who’ve said they don’t see a need for urgent government action. His comments are aligned with U.K. and industry views that policy makers should solve the issue and ensure contracts can continue post-Brexit.