The uncertainty over Brexit combined with the Covid-19 pandemic challenges could further increase disruptions to clients and markets, the Association for Financial Markets in Europe has warned.

In a 6 July paper, the European banking lobby group urged the EU and UK negotiators to put in place equivalence decisions amid a souring of Brexit negotiations as Europe’s Michel Barnier dismissed the UK’s bid to preserve the rights of the financial district after it leaves the EU. The UK is currently in a transition period that ends on 31 December.